IFC approves $400m loan for PTCL to acquire Telenor Pakistan

KARACHI: The Board of Directors of the International Finance Commission (IFC) has approved the debt financing of up to $400 million to Pakistan Telecommunications Company Limited (PTCL) for the acquisition of Telenor Pakistan.

PTCL has signed formal loan agreements with an IFC-led consortium to secure up to $400 million in financing for the acquisition of Telenor Pakistan and Orion Towers (Pvt) Limited.This is a significant milestone in the acquisition process following the IFC Board of Directors’ approval of the financing deal in April 2024, PTCL announced it in a notice to Pakistan Stock Exchange on Friday.

PTCL entered into a share purchase agreement (SPA) last December with Telenor BV to acquire 100 per cent of the shares of Telenor Pakistan at Rs108 billion on a cash-free, debt-free basis.

The IFC-led consortium, including the Silk Road Fund (SRF) and British International Investment plc (BII), has formally agreed upon a $400 million facility with a seven-year tenor.

The facility will be repaid in quarterly instalments and includes a one-year capital grace period. The financing of this project is in line with the IFC-led consortium’s commitment to enhancing digital connectivity and narrowing the digital infrastructure gap in Pakistan.

Commenting on the development, President and Group CEO PTCL & Ufone 4G Hatem Bamatraf said, “We are thrilled to witness 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 disbursement of financing is expected to take place following the completion of the conditions as specified in the financing agreements.