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Asia Deal of the Year 2011
18 April 2012
PIA
Read more:
Deals of the Year
2011
Pakistan International Airlines (PIA) accessed the first foreign currency syndicated financing by a Pakistani obligor since 2007 - a $100 million Islamic financing. PIA's ability to raise a significant amount of funds despite the country risk profile demonstrates that the right structure is key.
One compelling aspect for investors was the way it was structured to meet Islamic finance standards. Under Sharia law, a transaction must be asset backed. However, in this case PIA had no assets because all aircraft were already encumbered.
"What is unique about this transaction is the use of vouchers representing seats sold by PIA as the underlying...
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