PTCL Secures $400 Million Loan from IFC for Strategic Acquisition

PTCL Secures $400 Million Loan from IFC for Strategic Acquisition

Karachi, June 28, 2024 – Pakistan Telecommunication Company Limited (PTCL) has secured a $400 million loan from the International Finance Corporation (IFC). In a communication shared with the Pakistan Stock Exchange (PSX) on Friday, PTCL announced that the IFC Board of Directors has approved the debt financing to support PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited.

PTCL is finalizing the workstreams to sign the financing agreements with the IFC, with the process expected to be completed by July 31, 2024. Details of the debt financing will be disclosed upon finalizing these agreements.

The financing agreement, which includes a consortium led by the IFC, Silk Road Fund (SRF), and British International Investment (BII), was entered into on June 27, 2024. This agreement is structured as a seven-year loan with a one-year grace period. The loan will be repaid in quarterly installments starting from the second anniversary of the loan’s disbursement. PTCL emphasized that the disbursement of the financing will occur after the completion of conditions precedent specified in the financing agreements.

“The disbursement of financing thereunder shall occur following the completion of conditions precedent specified in such financing agreements,” PTCL added in their communication. The company also assured that any developments related to this loan would be promptly notified to the PSX as per applicable laws.

The acquisition of Telenor Pakistan and Orion Towers is a strategic move for PTCL, aiming to expand its market presence and enhance its infrastructure capabilities. Telenor Pakistan, one of the leading mobile operators in the country, and Orion Towers, a major player in the telecom infrastructure sector, represent significant assets that will bolster PTCL’s service offerings and operational scale.

The loan from IFC and its partners not only facilitates this acquisition but also underscores the confidence of international financial institutions in PTCL’s growth strategy and its role in Pakistan’s telecommunications sector. The financing will enable PTCL to leverage Telenor Pakistan’s extensive customer base and Orion Towers’ infrastructure to drive further growth and innovation in the industry.

This strategic acquisition is expected to enhance PTCL’s competitive position in the market, allowing it to offer more comprehensive and integrated telecommunications services. The investment will also support PTCL’s long-term objectives of digital transformation and improving connectivity across Pakistan.

As PTCL moves forward with this acquisition, the telecommunications landscape in Pakistan is poised for significant changes. The company’s strengthened market position will likely lead to enhanced service delivery and increased competition, benefiting consumers and contributing to the overall development of the country’s digital economy.