Islamic financing facility: Standard Chartered steps up for PIA

The bank was the sole arranger and structuring bank for this transaction.

KARACHI:
Standard Chartered Bank has arranged a one-year $35 million Islamic Structured Trade Finance facility for Pakistan International Airlines (PIA). The bank was the sole arranger and structuring bank for this transaction. The facility is structured as an offshore transaction under an Islamic mode, which uses an innovative Services Ijara concept based on purchase and distribution of airline seats. The facility will allow PIA to benefit from low interest rates in the international markets. The facility will be utilised by the airline for general corporate purposes. Hogan Lovells and Haidermota and Company acted as legal counsel to Standard Chartered, while PIA was represented by Mandviwalla and Zafar.


Published in The Express Tribune, August 7th, 2012.
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