PTCL is accelerating its acquisition of Telenor Pakistan by signing financial agreements with the IFC-led consortium

Karachi – June 28, 2024: Pakistan Telecommunications Company Limited (PTCL) has signed formal loan agreements with a consortium led by International Finance Corporation (IFC) to secure financing of up to $400 million for the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. This is a significant milestone in the acquisition process following the approval of the IFC Board of Directors of the financing transaction in April 2024.

In December last year, PTCL had entered into a Share Purchase Agreement (SPA) with Telenor BV to acquire 100% shares of Telenor Pakistan for a cash and debt-free consideration of PKR 108 billion.

The IFC-led consortium, comprising the Silk Road Fund (SRF) and British International Investment plc (BII), has now formally agreed to a $400 million seven-year loan. The loan will be repaid in quarterly installments and includes a one-year grace period for principal repayment. The financing for this project is in line with the IFC-led consortium’s commitment to improving digital connectivity and bridging the digital infrastructure gap in Pakistan.

Commenting on the development, President and Group CEO of PTCL and Ufone 4G, Hatem Bamatraf said, “We are thrilled with the materialization of this financing agreement, which brings us closer to completing this landmark milestone in the Pakistani telecom sector. We are ready to serve a larger customer base with renewed commitment once the acquisition process is completed following necessary regulatory approvals.”

It is expected that the funds will be disbursed once the conditions specified in the financial agreements are met.