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Pakistan International Airlines requires fresh equity to launch new service and expand fleet

15-Mar-2010 12:09 PM

Pakistan International Airlines (PIA) reportedly informed the Senate Standing Committee on Defence and Defence Production that it requires fresh equity to fund fleet expansion and network expansion (Dawn, 12-Mar-2010). The carrier stated there are three options – financial support from the Pakistani Government, conversion of USD250 million in foreign exchange loans to PKR-based loans, with 3-month LIBOR plus 3.75-5.28%, and conversion of PKR45 billion (USD538 million) non-fleet loans into equity, with mark-up rate fixed as 3-month LIBOR.