Citi Islamic Investment Bank (CIIB), Bahrain, a member of Citigroup, along with the Jeddah-based Islamic Development Bank (IDB) and Pakistan’s United Bank (UBL), acted as a joint arrangers for a $ 150 million, three-year Islamic Lease Finance Facility for Pakistan International Airlines (PIA).
Proceeds of the facility will be used for pre-delivery payments towards the purchase of three new Boeing-777 aircraft by PIA, as part of the fleet replacement and modernization plan adopted by the airline.
The facility was well oversubscribed with firm commitments of $196 million. While Banque Saudi Fransi (BSF) and Saudi American Bank (SAMBA) acted as co-arrangers, Abu Dhabi Islamic Bank (ADIB) acted as senior lead manager. Other participants in the facility included ABC Islamic Bank, Bahrain Islamic Bank (BIB), Bank Al-Jazira, Dubai Bank, Emirates Bank International (EBI), Muslim Commercial Bank (MCB), Saudi National Commercial Bank and Arab Investment (TAIC).
This facility follows a conventional $85 million short term facility arranged in November 2002 by Citigroup, SAMBA and UBL to meet PIA’s immediate payment obligations towards the acquisition of three new aircraft. Citigroup has also been mandated, towards the end of 2002, to arrange a $342 million financing for PIA’s acquisition of the new aircraft, with the US-based Export Import (EXIM) Bank backing the facilities.
CIIB was incorporated in July 1996 in Bahrain, as a 100 percent owned subsidiary of Citigroup. Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
