Pakistan International Airlines (PIA) has received a US$35mn Islamic structured trade finance facility arranged by Standard Chartered.

Structured as an offshore Islamic transaction, the loan uses an Ijarah contract, a type of lease based on the purchase and distribution of airline seats. PIA will use the facility for general corporate purposes.

Upon signing the transaction in Dubai, Mohsin Nathani, chief executive, Standard Chartered Pakistan, said: “Standard Chartered is committed to the Pakistan market. We are glad to have successfully arranged this unique facility for PIA and are pleased to be deepening our relationship further. By providing this financing solution we aim to help them meet their long-term objectives.”

Law firms Hogan Lovells and Haidermota & Co and Mandviwalla & Zafar acted as legal counsels to Standard Chartered and PIA respectively.