KARACHI: The Board of Directors of International Finance Corporation (IFC) has approved the debt financing of up to $400 million to PTCL for acquisition of Telenor Pakistan Limited (TPL), and that the finalisation of work streams to sign financing agreements with IFC is under way and expected to be completed on or before July 31, 2024.
It was also shared that the details of the debt financing shall be disclosed upon the finalisation of financing agreements, material information sent to Pakistan Stock Exchange on Friday said.
PTCL has entered into seven years with one year grace period financing agreements with International Finance Corporation (IFC) led consortium which includes Silk Road Fund (SRF) and British International Investment (BII) on 27th June, 2024 for the purposes of financing the acquisition of Telenor Pakistan and Orion Towers (Private) Limited. The loan up to $400 million is to be paid in quarterly installments from second anniversary of the loan.
The disbursement of financing there under shall occur following completion of conditions precedent specified in such financing agreements, it added.
Pakistan Telecommunications Company Limited in its statement issued on Friday said PTCL has signed formal loan agreements with an International Finance Corporation (IFC)-led consortium to secure up to $400 million in financing for the acquisition of Telenor Pakistan and Orion Towers (Private) Limited. This is a significant milestone in the acquisition process following the IFC Board of Directors’ approval of the financing deal in April 2024.
PTCL entered into a Share Purchase Agreement (SPA) last December with Telenor B.V. to acquire 100 percent of the shares of Telenor Pakistan at a price of Rs 108 billion on a cash-free, debt-free basis.
The IFC-led consortium, which includes the Silk Road Fund (SRF) and British International Investment plc (BII), has now formally agreed upon a $400 million facility with a seven-year tenor. The facility will be repaid in quarterly installments and includes a one-year capital grace period. The financing of this project is in line with the IFC-led consortium’s commitment to enhancing digital connectivity and narrowing the digital infrastructure gap in Pakistan.
Commenting on the development, President and Group CEO, PTCL and Ufone 4G, Hatem Bamatraf said, “We are thrilled to witness the materialization 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.”
Copyright Business Recorder, 2024
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