The World Bank’s International Finance Corporation (IFC) has approved a $400 million loan for Pakistan Telecommunication Company Limited (PTCL) to help finance the acquisition of Telenor Pakistan.
“It is to inform that the Board of Directors of International Finance Corporation (IFC) has approved the debt financing of up to US$ 400 million to PTCL for the acquisition of TPL” the company informed the main bourse on Monday.
Last year it was notified that PTCL had entered into a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan (Private) Limited (TPL) for the acquisition of 100 percent shares of TPL, based on an Enterprise Value of Rs. 108 billion on a cash-free, debt-free basis.
Now, the transaction will be financed by external debt that will be raised by the Company.
The finalization of workstreams to sign financing agreements with IFC is underway and expected to be completed on or before 31st July 2024. The details of the debt financing shall be disclosed upon the finalization of financing agreements, the filing added.
PTCL Group had signed the share purchase agreement with Telenor Pakistan for the acquisition of a 100 percent stake in the company in December last year.
Notably, this agreement is one of the most noteworthy events in the country’s telecom sector. The deal is not only poised to strengthen the market standing of PTCL Group but also transform the country’s telecom and digital sector by accelerating growth and innovation.
