PTCL and IFC secure deal for Telenor acquisition

KARACHI: Pakistan Telecommunication Company Limited (PTCL) and the International Finance Corporation-led (IFC) consortium came together to formalize and celebrate the historic financing deal -- subject to regulatory approvals -- for PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited at a special event in Karachi.

PTCL signed a share purchase agreement with Telenor (ASA) in December 2023 for the acquisition of 100 per cent shares in Telenor Pakistan and Orion Towers (Pvt) Ltd at the acquisition price of Rs108 billion on a debt-free, cash-free basis. PTCL approached the IFC for the project’s financing, which was subsequently approved in April 2024, and endorsed by the IFC’s board of directors.

The IFC-led consortium includes the Silk Road Fund (SRF), a Chinese state-owned medium-to-long-term investment fund, and British International Investment (BII), the UK’s development finance institution and impact investor.

Governor of the State Bank of Pakistan Jameel Ahmad was chief guest at the event, which was also attended by President & Group CEO, PTCL & Ufone 4G Hatem Bamatraf; IFC’s Regional Director for the Middle East, Pakistan & Afghanistan Khawaja Aftab Ahmed; the UAE ambassador; the British high commissioner; representatives of the consortium; and senior and top executives from the PTCL Group.

The event marked the most significant milestone in the realization of PTCL’s upcoming acquisition of Telenor Pakistan and Orion Towers, following the signing of the financing deal in June 2024 to secure up to $400 million.

Speaking at the event, the chief guest said, “The IFC’s financing in Pakistan’s telecom sector reinvigorates confidence in the sector’s growth potential. The country’s telecom and digital sector is one of the important contributors to the national economy, and its growth and sustainability can play an important role towards economic prosperity.” He added that “the SBP is fully committed to facilitating this transformative development and expects that this would bring wide-ranging benefits to the country.”

Hatem Bamatraf, President and Group CEO, PTCL & PTML (Ufone 4G), said, “This is the largest single financing ever secured in the industry, and it not only strengthens PTCL Group but also supports the long-term financial stability and sustainability of the entire telecom sector by enabling greater economies of scale. As a result, the industry will be better positioned to contribute to the national economy and societal progress.”

“Pakistan’s telecommunication market offers significant opportunities for growth and investment,” said Khawaja Aftab Ahmed, the IFC’s regional director for the Middle East, Pakistan and Afghanistan. “This investment reflects the IFC’s commitment to bolstering inclusive, high-quality digital connectivity and infrastructure in the country by working together with our partners, including the PTCL Group, the Pakistan government, as well as co-investors BII and SRF.”