KARACHI: The International Finance Corporation’s (IFC) Board of Directors has approved PTCL’s debt financing of up to $400 million for the acquisition of Telenor Pakistan Limited (TPL), and modalities to sign the financing agreement with IFC are being finalized, with completion expected on or before July 31, 2024.
It was also reported that the terms of the loan financing would be published after finance agreements are finalized, according to material information provided to the Pakistan Stock Exchange on Friday.
On June 27, 2024, PTCL entered into seven-year financing agreements with a one-year grace period with an International Finance Corporation (IFC)-led consortium led by Silk Road Fund (SRF) and British International Investment (BII) to fund the acquisition of Telenor Pakistan and Orion Towers (Private) Limited. The loan of up to $400 million will be paid in quarterly installments commencing on the second anniversary of the loan.
It further said that financing will be disbursed after the conditions specified in the financing agreement have been met.
In a statement issued on Friday, Pakistan Telecommunications Company Limited said it had signed formal loan agreements with an International Finance Corporation (IFC)-led consortium to secure up to $400 million in financing for Telenor acquisition. This is a significant development in the acquisition process, following the IFC Board of Directors’ acceptance of the financing agreement in April 2024.
Last December, PTCL entered into a Share Purchase Agreement (SPA) with Telenor B.V. to purchase 100% of Telenor Pakistan’s shares for Rs 108 billion on a cash-free, debt free basis.
IFC, leading the consortium that also includes the Silk Road Fund (SRF) and British International Investment plc (BII), has officially committed to a $400 million credit with a seven-year term. This loan will be repaid in quarterly installments, with a one-year capital grace period. The financing for this project is consistent with the IFC-led consortium’s goal to enhance digital connectivity and reduce the digital infrastructure gap in Pakistan.
Hatem Bamatraf, President and Group CEO of PTCL and Ufone 4G, commented on the development, saying, “We are thrilled to see this funding transaction materialize, which puts us closer to completing this momentous milestone in Pakistan’s telecom sector. We are eager to serve a broader customer base with renewed devotion as soon as the acquisition process is completed, subject to required regulatory approvals.”
