Dubai Islamic Bank-led consortium is appointed to lead restructuring of struggling Pakistan International Airlines Corp
The Government of Pakistan has appointed a consortium headed by Dubai Islamic Bank (DIB) as the financial advisor on the restructuring of Pakistan International Airlines Corporation (PIAC).
Five consortia were shortlisted for the deal by the country's Privatisation Commission, a statement said.
“The appointment of DIB’s advisory team on this landmark transaction is testament to the bank’s undisputed technical capability, sophistication, credibility and expertise in advising and executing transactions along a wide spectrum of financial requirements and across a varied and diverse customer base,” said Dr Adnan Chilwan, CEO at Dubai Islamic Bank.
“Our growth agenda for 2014 and beyond has a renewed focus on international expansion and cross border business as we forge ahead in our plans to establish DIB as a household name in the markets we operate.
"The award of this mandate to the bank demonstrates the Government of Pakistan’s confidence in our continued support and commitment to the country and its economy,” he added.
PIAC, the national flag carrier has been swamped with diverse challenges for some time including an ageing fleet, maintenance issues, oil bill and competition of domestic and international carriers, which weighed heavily on its revenue line and significantly depressed its financial condition.
The corporation required multiple interventions by the government to rescue it from its economic and commercial difficulties.
Faced with numerous challenges on diverse fronts itself and to channels its financial resources on more pressing needs, the present government took a leaf from its past privatisation performance, and decided to restructure the entity.
Dubai Islamic Bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 100 branches across 36 major cities in Pakistan.