Pakistan Telecommunication Company Limited (PTCL) has finalised the financing agreement worth up to USD 400 million. The deal which was initially thought to be with the International Finance Corporation (IFC) alone is actually revealed to be with a consortium led by the International Finance Corporation (IFC). The consortium includes Silk Road Fund (SRF), a Chinese government fund, and British International Investment (BII), a development finance institution of the UK government.
This financing arrangement, with a tenure of seven years and a one-year grace period, is aimed at facilitating PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited. PTCL has officially entered this financing deal from 27th June, 2024. Repayment of the loan is structured in quarterly instalments starting from the second anniversary of the loan agreement.
According to details shared by PTCL with the Pakistan Stock Exchange, the disbursement of the loan will proceed once the specified conditions precedent are met. PTCL had earlier informed stakeholders in April 2024 about the IFC Board of Directors’ approval for the debt financing and the ongoing finalisation of work streams for the agreement.
Ms. Zahida Awan, Group Chief Legal Officer and Company Secretary at PTCL, emphasised the company’s commitment to keeping the Pakistan Stock Exchange (PSX) informed of any further developments in accordance with applicable laws. The PSX and Securities and Exchange Commission of Pakistan (SECP) have been duly notified of this significant financial milestone.
Earlier, in December 2023, Telenor B.V the parent company of Telenor Pakistan signed a share purchase agreement with PTCL. The e& backed-PTCL acquired Telenor Pakistan for Rs 108 billion materialising a landmark deal in Pakistan’s telecom history. The deal has since awaited regulatory approvals and the release of financing for the acquisition means positive news on the approval front.
