KARACHI: Pakistan Telecommunication Company Ltd. (PTCL) has signed a $400 million financing agreement with a consortium led by the International Finance Corporation (IFC) to enable the nation’s largest telecom operator to carry out its acquisition plan of Telenor Pakistan and its subsidiary Orion Towers (Private) Ltd.
In December 2023, PTCL and Telenor (ASA) inked a share purchase agreement for the purchase of 100% of Telenor Pakistan and Orion Towers (Pvt) Ltd shares at a cash-free, debt-free acquisition price of Rs 108 billion.
According to a PTCL statement, “The project was approved in April 2024 and endorsed by the IFC Board of Directors after the PTCL approached IFC for financing.” “The Silk Road Fund (SRF), a medium-to-long-term investment fund owned by the Chinese government, and British International Investment (BII), an impact investor and development finance institution in the UK, are part of the consortium lead by the IFC.”
Governor Jameel Ahmed of the State Bank of Pakistan described the IFC financing as a symbol of the global community’s belief in Pakistan’s potential for growth in the telecom industry during a ceremony commemorating the agreement.
One of the major drivers of the national economy in Pakistan is the telecom and digital sector, and the development and sustainability of this industry can be crucial to the prosperity of the nation. He continued, “The State Bank is totally dedicated to supporting this revolutionary development and anticipates that it will have numerous positive effects on the nation.
The agreement with the IFC-led consortium, according to Hatem Bamatraf, President and Group CEO of PTCL & PTML (Ufone 4G), marked a turning point for Pakistan’s telecom industry.
