PTCL gets $400m financing for Telenor acquisition

IFC-led consortium supports major telecom deal

ISLAMABAD:

In a major development for Pakistan’s telecom sector, Pakistan Telecommunications Company Limited (PTCL) has secured $400 million in debt financing from an International Finance Corporation (IFC)-led consortium to acquire Telenor Pakistan and Orion Towers (Pvt) Limited. PTCL recently signed formal loan agreements with the consortium, marking a significant milestone in the acquisition process following the IFC Board of Directors’ approval of the financing deal in April 2024.

Last December, PTCL entered into a Share Purchase Agreement with Telenor BV to acquire 100% of the shares of Telenor Pakistan for Rs108 billion on a cash-free, debt-free basis. The IFC-led consortium, which includes the Silk Road Fund and British International Investment plc, has now formally agreed upon a $400 million facility with a seven-year tenor. This facility will be repaid in quarterly instalments with a one-year capital grace period.

The financing of this project aligns with the IFC-led consortium’s commitment to enhancing digital connectivity and narrowing the digital infrastructure gap in Pakistan. Commenting on the development, Hatem Bamatraf, President and Group CEO of PTCL & Ufone 4G, expressed enthusiasm about the deal, stating, “We are thrilled to witness the materialisation of this financing deal, which brings us closer to concluding this transformative milestone in Pakistan’s telecom sector. We are eager to serve a larger customer base with renewed commitment as soon as the acquisition process concludes following the necessary regulatory approvals.”

The disbursement of the financing is expected to take place following the completion of the conditions specified in the financing agreements.