IFC Approves 7-Year Debt Financing of $400 Million For PTCL to Buy Telenor Pakistan

The International Finance Corporation (IFC) has approved the debt financing of up to $400 million for a period of seven years to Pakistan Telecommunication Company Limited (PTCL) for the acquisition of Telenor Pakistan.

“Further to our letter dated April 08, 2024, whereby it was notified that the Board of Directors of International Finance Corporation (IFC) has approved the debt financing of up to USD 400 million to PTCL for the acquisition of Telenor Pakistan and that the finalization of workstreams to sign financing agreements with IFC is underway and expected to be completed on or before 31st July, 2024.

It was also shared that the details of the debt financing shall be disclosed upon the finalization of financing agreements,” the company informed the main bourse on Friday.

Commenting on the development, President and Group CEO, PTCL & 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”.

The filing said PTCL has entered into seven (7) years with one-year grace period financing agreements with the International Finance Corporation (IFC) led consortium. Other members include the Silk Road Fund (SRF) and British International Investment (BII). They agreed on 27th June 2024 for the purposes of financing the acquisition of Telenor Pakistan and Orion Towers (Private) Limited.

The loan of up to $400 Million is to be paid in quarterly installments from the second anniversary of the loan.

“The disbursement of financing thereunder shall occur following completion of conditions precedent specified in such financing agreements,” the filing added.

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.