KARACHI: Pakistan International Airlines has closed a $100 million Sharia-compliant financing facility.

The facility was arranged by Abu Dhabi Islamic Bank, Al Hilal Bank, Citibank N.A., and United Bank Limited as mandated lead arrangers and joint book runners. Warba Bank in Kuwait has joined as lead arranger. Citibank N.A. is also performing the role of the account bank and security trustee.

This innovative Islamic transaction is secured by PIA's ticket sales generated in the UAE and aggregated through IATA's Billing and Settlement Plan, and through sales by general sales agents.

The three-year facility will be used for PIA's general corporate purposes and reflects investor confidence in the airline and its strategic importance to Pakistan.

The facility represents the first foreign currency commercially syndicated financing for a Pakistani corporate since 2007. The transaction is also important for the aviation sector as it uniquely broadens airline corporate credit to regional Islamic financiers.