Pakistan International Airlines to Raise up to PKR 20 Billion Through Sukuk with BankIslami Pakistan

Pakistan International Airlines (PIA) is planning to raise up to PKR 20 billion in financing through Sukuk. PIA has appointed BankIslami Pakistan to act as financial advisor and joint bookrunner, with proceeds from the issuance expected to lower the losses of the state-owned airline, according to local media reports.

Amir Ali, President and Chief Executive Officer of BankIslami Pakistan, stated that as PIA is majority-owned by the Government of Pakistan (GoP) and the Sukuk is backed by the GoP guarantee, the issuance may be classified as a sovereign Sukuk. Ali added that BankIslami Pakistan was coming up with privately-placed listed Sukuk as well as Islamic commercial papers and short-term Sukuk for the Pakistan aviatio...