PIA raises $130 million

Pakistan International Airlines has successfully closed a US$130 million Islamic facility with multi-currency tranches in AED and USD. The transaction is based on an innovative Shari’a structure comprising Vouchers representing PIA seats as the underlying asset. The first such transaction was done in 2011 by PIA, which raised $100 million. The pricing was not disclosed but is stated to be “attractive for PIA and lower than the 2011 transaction”. A critical element of the transaction success is a robust security structure comprising of an assignment of PIA’s IATA receivables from the Saudi route, which are received directly into a secured