KARACHI, September 2024 — PTCL, along with the International Finance Corporation (IFC)-led consortium, has finalized a groundbreaking $400 million financing agreement that will propel PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited. This Rs 108 billion acquisition aims to reshape Pakistan’s telecom industry, once regulatory approvals are secured.
The journey began in December 2023, when PTCL signed a share purchase agreement with Telenor (ASA) to fully acquire Telenor Pakistan and Orion Towers. The acquisition, priced at Rs 108 billion on a debt-free, cash-free basis, led PTCL to approach IFC for financing. In April 2024, IFC’s Board of Directors approved the deal. The financing consortium also includes the Silk Road Fund (SRF), a state-owned Chinese investment vehicle, and British International Investment (BII), the UK’s development finance institution and impact investor.
By June 2024, PTCL and IFC completed the financing terms and secured $400 million. The agreement was formally celebrated at a special event in Karachi, attended by notable figures like Jameel Ahmad, Governor of the State Bank of Pakistan, who served as the chief guest. Other prominent attendees included Hatem Bamatraf, President & Group CEO of PTCL & Ufone 4G; Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan & Afghanistan; the UAE Ambassador; the British High Commissioner; and senior executives from the consortium and PTCL Group.
Governor SBP Commends PTCL and IFC’s Collaboration
Governor SBP Jameel Ahmad highlighted IFC’s significant role in restoring confidence in Pakistan’s telecom sector, emphasizing its importance in boosting economic growth. He reiterated the State Bank’s full support for these transformative initiatives, stating, “This acquisition holds tremendous potential for driving our country’s economy forward.”
A Major Milestone for PTCL Group
Hatem Bamatraf, President & Group CEO of PTCL and PTML (Ufone 4G), praised the critical role of the IFC-led consortium in securing the $400 million deal. He underscored how this historic agreement, the largest of its kind in Pakistan’s telecom sector, enhances PTCL Group’s leadership and strengthens its financial stability. “This acquisition will enable us to expand our operations and deliver improved services to more customers across Pakistan,” Bamatraf remarked.
IFC’s Continued Commitment to Pakistan’s Telecom Growth
Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan, reaffirmed IFC’s strong commitment to the country’s telecom sector. He noted, “We believe digital connectivity and infrastructure have the power to transform economies. By partnering with PTCL, the Government of Pakistan, BII, and SRF, we are opening up major growth opportunities in Pakistan.”
Looking Ahead: Regulatory Approvals Awaited
With financing in place, PTCL now awaits approval from the Competition Commission of Pakistan (CCP) to conclude the acquisition. Once approved, this deal is poised to significantly improve Pakistan’s telecom infrastructure and fuel the country’s digital advancement.
To conclude the event, Governor SBP Jameel Ahmad presented commemorative gifts to the distinguished guests, marking the significance of this partnership in shaping the future of Pakistan’s telecom industry.
