Pakistan International Airlines issues bond sale to repay debt
17-Jul-2007 |
Airline Code [PIA]
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(CAPA): Pakistan International Airlines (PIA) announced plans to issue USD438 million in eight-year bonds (its biggest bond issue to date) to help retire other borrowings and to invest in maintenance and training. The carrier which is 88% owned by Pakistan Government, plans to issue foreign or local-currency bonds or Islamic debt by Sep-07.
Zaffar A Khan, Chairman stated, “We have a very unhealthy balance sheet. We have a lot of debt on our books and restructuring it will give us a little more breathing space. I'm hoping a significant part of the haemorrhaging will be controlled in the next six to eight months. That will buy us some time to remap and then fix our longer-term problems”.
The carrier is in financial trouble, losing approximately USD660,000 per day, and reported a USD65.1 million net loss in the three months ended 31-Mar-07.
Meanwhile, the carrier is shortly expected to announce plans to replace its ageing B737s, after the aircraft were blacklisted by the EU in Mar-07. The ban has since eased, allowing the carrier to operate 11 of its 20 long-haul aircraft. Khan announced he is hopeful that the EU will remove the remaining restrictions by Oct-07, following improvements to safety procedures. Date posted: 17-Jul-07. |
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Pakistan International Airlines issues bond sale to repay debt 
