Standard Chartered Pakistan has arranged an Islamic structured facility for Pakistan International Airlines (PIA).
The bank acted as the sole arranger and structuring bank of the $35 million loan with a 12-month term.
The Ijara compliant financing facility, which will be used for general corporate purposes, is secured by the purchase and distribution of airline seats in the carrier.
Standard Chartered Pakistan chief executive officer Mohsin Nathani commented: "We are glad to have successfully arranged this unique facility for PIA and are pleased to be deepening our relationship further. By providing this financing solution we aim to help them meet their long term objectives."
Hogan Lovells and Haidermota and Company acted as legal counsel to Standard Chartered, while PIA was represented by Mandviwalla and Zafar.
Last December PIA closed a $90 million Shari'a compliant financing facility with a syndicate of banks. The three-year term was arranged by Abu Dhabi Islamic Bank, Al Hilal Bank, Citibank, and United Bank as mandated lead arrangers and joint bookrunners.