KARACHI, May 31: Pakistan International Airline (PIA) and ABN Amro signed a loan financing arrangement for $522 million to fund acquisition of three new Boeing 777-300 ER aircraft for the national flag carrier.

The financing arrangement comprises 12-year term loan facilities of $470 million supported by the Export-Import Bank of US and Pakistan government guarantee and seven year commercial facilities of $62 million.

The agreement signing ceremony, arranged by the ABN Amro Bank in Amsterdam, was attended by senior members from ABN Amro's cross border structured finance group, including Maarten Klessens, global head of structured funding and investments, Paul Kranendonk, Global Head Cross Border Structured and Commodity Finance and Naveed A Khan, Country Executive, ABN Amro Pakistan.

Representing the Boeing was Anil Patel. PIA team was led by M Abdul Aleem, chief financial officer.

Klessens congratulated PIA for remarkable achievement which resulted in fleet modernisation through a very attractive financing package.

PIA chairman Zaffar A Khan appreciated ABN Amro and PIA loan agreement in finalising this large transaction at commercially attractive rates.

He said that the government is lending full support to ongoing business operation of airline which is currently undergoing an operational, financial re-structuring and modernisation activity to further improve its customer service and performance.—PPI