IslamicFinance.de

Pakistan International Airlines Corporation (PIA) recently announced the successful closure of its US$ 120,000,000 Secured Syndicated Islamic Facility.
Citibank and Mashreq Bank PSC acted as joint initial mandated lead arrangers, bookrunners and coordinators for the facility. The transaction received an overwhelming response from the market and was over-subscribed.
The syndicate comprised of a diverse set of banks spread across GCC and South Asia. The participating banks included Askari Bank Limited, National Bank of Pakistan, Noor Bank PJSC, United Bank Limited and Warba Bank KSCP as mandated lead arrangers and bookrunners, Bank Islam Brunei Darussalam Berhad as lead arranger and Bank Alfalah Limited as arranger. This transaction once again reiterates the multitude of synergies developing between the Middle East and Pakistan.
The facility carries a tenor of three years and will be utilized to support the Company’s ongoing strategic growth plans and general corporate purposes.

Mashreq Bank has said its investment unit plans to set up an Islamic equity fund of up to $100m in the third quarter of this year to invest in stocks across the Gulf region, given lower returns in the bond market. Mashreq Capital hopes to raise between $75m and $100m for the fund, and will seed it with a $20m investment from the bank.

Mashreq has reported a net profit of AED1.3 billion for the last year, constituting a 60 per cent increase on the previous year. The annual increase is on the back of fee income and investment income. The board has proposed a cash dividend of 38% subject to Central Bank and shareholder approval. According to the Chief Executive Officer of Mashreq, H.E. Abdul-Aziz Al Ghurair, the sucess of Mashreq in 2012 is based on commitment to customer centricity and staying at the leading edge of banking innovation. The bank also received several awards last year.

The first to receive the Dubai Chamber of Commerce and Industry CSR Label during a special ceremony held at the Dubai Chamber’s premises recently were the following three: Dubai Chamber CSR Label to representatives from Emirates Gas, Intercoil International LLC and Mashreq bank for demonstrating commitment to corporate social responsibility (CSR) in the areas of environment, marketplace, workplace and communities.