Jazz secures Rs50bn credit facility from banking consortium led by HBL

• 10-year facility to be used to finance ongoing 4G network rollouts and technology upgradation

ISLAMABAD: Jazz has secured a Rs 50 billion syndicated credit facility from a banking consortium led by HBL. This 10-year facility will be used to finance the company's ongoing 4G network rollouts and technology upgradation, stated a press release.

This is the first of its kind facility extended to the telecom sector in terms of the amount and tenor. The facility is fully subscribed by HBL, the consortium's investment agent and mandated lead arranger.

Other banks who are also acting as the mandated lead arrangers and advisors on this deal include United Bank Limited, National Bank of Pakistan, MCB Bank, Bank Alfalah, Allied Bank Limited, Askari Bank Limited, Bank of Punjab, Meezan Bank Limited and Faysal Bank Limited.

Jazz has over 69 million subscribers and more than 28 million 4G users nationwide. Over a period of two years, the company has invested $462 million on 4G infrastructure.

Meanwhile, HBL has grown its network to over 1,650 branches, serving over 23 million customers in 14 countries across the world.

"We continue to drive the digital Pakistan agenda by improving digital infrastructure, bridging the digital divide and focusing on financial inclusion," said Gabor Kocsis, Chief Financial Officer, Jazz. "We are enabling societies by investing in entrepreneurship, digital skills and literacy. This facility is an integral step towards ensuring that people are not bound by the limitations of geography, gender, or socioeconomic background, in harnessing the power of the internet."

Muhammad Aurangzeb, President & CEO at HBL, stated, "We are delighted to have led this landmark transaction in the telecom sector. For the bank, such transactions serve HBL's strategic priority of supporting the promotion of digitalization across the country."

Copyright Business Recorder, 2021