15-Mar-2010 12:09 PM

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

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.