PTCL Secures $400M Financing to Acquire Telenor Pakistan

Staff Report

PTCL has successfully entered into a seven-year financing agreement, with a one-year grace period, with an International Finance Corporation (IFC) led consortium.

PTCL has revealed this in a notice sent to Pakistan Stock Exchange.

This consortium includes the Silk Road Fund (SRF) and British International Investment (BII).

The agreement, finalized on June 27, 2024, secures up to USD 400 million in debt financing for PTCL to acquire Telenor Pakistan and Orion Towers (Private) Limited.PTCL-Telenor Merger: CCP seeks comments from PTA, other stakeholders

This announcement follows the initial notification dated April 08, 2024, which confirmed the Board of Directors of IFC’s approval of the financing.

The finalization of workstreams and signing of financing agreements were anticipated to be completed by July 31, 2024.

The loan is structured to be repaid in quarterly installments starting from the second anniversary of the loan. The disbursement of funds will occur once the specified conditions precedent in the financing agreements are met.

Details regarding the debt financing will be disclosed upon the finalization of these agreements. This strategic move is set to bolster PTCL’s market position and expand its operational capabilities in Pakistan.