PTCL signs loan deal with IFC to acquire Telenor
KARACHI: Pakistan Telecommunication Company Ltd (PTCL) has entered into a deal with International Finance Corporation (IFC)-led consortium for $400 million financing that would help the country’s largest telecom operator to materialise its plan of acquisition of Telenor Pakistan and its subsidiary Orion Towers (Private) Ltd.
PTCL had in December 2023 signed a share purchase agreement with Telenor (ASA) for the acquisition of 100 per cent shares in Telenor Pakistan and Orion Towers (Pvt) Ltd at the acquisition price of Rs108 billion on debt- free cash-free basis.
“The PTCL approached IFC for financing of the project, which was subsequently approved in April 2024, and endorsed by the IFC Board of Directors,” said a PTCL statement. “The IFC-led consortium includes the Silk Road Fund (SRF), a Chinese state-owned medium-to-long-term investment fund, and British International Investment (BII), the UK’s development finance institution and impact investor.”
At a ceremony to mark the deal, State Bank of Pakistan Governor Jameel Ahmed called the IFC financing reflection of the world’s confidence in Pakistan’s telecom sector growth potential.
“Pakistan’s telecom and digital sector is one of the important contributors to the national economy, and its growth and sustainability can play an important role towards country’s economic prosperity. The State Bank is fully committed and facilitating this transformative development and expect this would bring wide-ranging benefits to the country,” he added.
Hatem Bamatraf, President and Group CEO, PTCL & PTML (Ufone 4G), said that the deal with the IFC-led consortium makred a defining moment for Pakistan’s telecom sector.
Published in Dawn, September 27th, 2024