22 November 2015
Dubai - UAE: Pakistan International Airlines Corporation ("PIA"), the national flag carrier of Pakistan, is pleased to announce the successful close of its US$ 120,000,000 Secured Syndicated Islamic Facility (the "Facility"). Citibank, N.A. ("Citi") and Mashreqbankpsc ("Mashreq") acted as Joint Initial Mandated Lead Arrangers, Bookrunners and Coordinators for the Facility.

The transaction received an overwhelming response from the market and was over-subscribed.

The syndicate comprised of a diverse set of banks spread across the GCC and South Asia. The participating banks included Askari Bank Limited, National Bank of Pakistan, Noor Bank PJSC, United Bank Limited and Warba Bank K.S.C.P as Mandated Lead Arrangers &Bookrunners, Bank Islam Brunei Darussalam Berhad as Lead Arranger and Bank Alfalah Limited as Arranger. This transaction once again reiterates the multitude of synergies developing between the Middle East and Pakistan.

The Facility carries a tenor of 3 years and is secured by select receivables of the airline. The proceeds of the Facility will be utilized to support the Company's ongoing strategic growth plans and general corporate purposes.

Nayyar Hayat, CFO of PIA, said "PIA is one of the largest public sector entities in Pakistan and holds strategic importance for the Government of Pakistan, and, through this transaction, it has once again successfully secured a 100% Shari'ah compliant structured debt instrument as part of its on-going strategic capital raising program to support its intensive growth plans and evolve into the a leading international airline. This syndication reiterates the Company's access to avail international liquidity, with the same success it has accomplished with local financial institutions. We are delighted to have worked with Citi & Mashreq and all the participating banks on this successful transaction."

Nadeem Lodhi, CCO & MD Citibank N.A., Pakistan said,"The swift closure of this transaction is a testament to materialization of PIA's strategic growth plans. Pakistan is a key market for Citi and we remain committed to working closely with clients and providing financing solutions for their growth needs".

Rizwan Shaikh, head of Citi's CEEMEA Loans Team, added"PIA has continued to demonstrate its ability to use innovative structures to access the market successfully and repeatedly over the last several years. PIA has also timed the transaction well, tapping investors ahead of a tightening in liquidity being observed in some areas of the market."

Iqbal Hassan Khanyari, Head of International Corporate Division & Islamic

Bankingat Mashreq commented, "It has been a pleasure to work with PIA and help realize their aspirations. The successful closure of this transaction is evidence of the banking community's confidence in PIA's strategic growth plans being delivered. Pakistan has always been an essential growth market for Mashreq and we remain committed to working alongside our core relationship clients."

Chiradeep Deb, MD and Head of Mashreq's Corporate Finance Teamcommented: "An oversubscribed transaction, in current market circumstances once again brings to fore the acceptance of the receivables backed structure among regional banks, improving credit story of Pakistan, PIA in particular and the strong relationship that the Bookrunners have with its banking partners".

-Ends-

About Mashreq
Mashreq is the oldest bank in the UAE with an extensive branch network across the Emirates. Mashreq is also present in Qatar, Bahrain, Kuwait and Egypt and 26 overseas offices in 12 countries spread across Europe, USA, Asia and Africa providing a comprehensive range of international financial services. Established in 1967, Mashreq has established itself as a market leader by delivering award-winning customer experiences and innovative thinking across its financial products and services. Mashreq's various banking divisions cater to its own unique specialisms and expertise and include: Corporate Banking, Retail Banking, International Banking, and Innovative Treasury Services. The bank also allows for customers to experience Sharia'h Compliant financial banking solutions. As a leading financial institution, Mashreq is committed to supporting every community it serves. In the UAE, the bank pays particular attention to recruiting, training, and developing UAE National employees.  Mashreq is the only financial institution in the UAE to have been awarded the CSR Label by Dhabi Chamber for five years in a row.

For media enquiries, please contact:
Huda Ismail                                                         Nssrin Khalil
Public Relations, Mashreq                                 Public Relations, Mashreq
Tel: 04 -6083629                                            Tel: 04 - 6083836
Email: HudaI@mashreq.com                           Email: NssrinK@mashreq.com

© Press Release 2015