The International Finance Corporation (IFC) has approved a debt financing of up to $400 million for Pakistan Telecommunication Company Limited (PTCL) over a seven-year period to facilitate the acquisition of Telenor Pakistan.
In a statement released on Friday, PTCL informed the main bourse that the Board of Directors of the IFC had approved the financing, with finalization of agreements expected by July 31, 2024. Details of the financing will disclose upon agreement finalization.
President and Group CEO of PTCL & Ufone 4G, Hatem Bamatraf, expressed enthusiasm about the deal, emphasizing its significance for Pakistan’s telecom sector. Furthermore, he highlighted PTCL’s commitment to expanding its customer base upon completion of the acquisition, pending regulatory approvals.
PTCL has entered into seven-year financing agreements with the IFC-led consortium, which includes the Silk Road Fund (SRF) and British International Investment (BII). Moreover, the agreements, formalized on June 27, 2024, aim to fund the acquisition of Telenor Pakistan and Orion Towers (Private) Limited.
Under the terms, PTCL will repay the $400 million loan in quarterly installments beginning from the second anniversary of the loan. Simultaneously, disbursement is contingent upon satisfying the specified conditions precedent in the agreements.
This transaction is expected to enhance not only PTCL Group’s market position but also to catalyze growth and innovation in Pakistan’s telecom and digital sectors.
