WorldCall Telecom Limited has availed a syndicated $35 million loan facility for the company’s expansion and availed the financing against corporate guarantee of Oman Telecommunication Company, the parent company, reported The News.
For the purpose, Askari Bank Limited has provided $35 million facility for a term of seven years with a grace period of two years.
Oman Telecommunications Company (Omantel), the parent company of WorldCall, on December 15, 2010 had decided to issue a written guarantee to a third party to provide funding to the company’s subsidiary, WorldCall Telecom Company equivalent to $35 million.
The amount will be used to partly settle urgent dues and the rest to be used for WorldCall expansion.
This fund injection came at a time when Worldcall losses have been increased to Rs. 1.5 Billion in the year 2010 as compared to Rs. 490 million of losses in 2009. Company is facing severe competition for its WLL business, amid lowering GSM call rates.