Islamabad, Sep 26: At a special event in Karachi, the International Finance Corporation (IFC) and Pakistan Telecommunication Company Limited (PTCL) jointly announced and celebrated the historic financing agreement for PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited, subject to regulatory approvals.
In order to purchase all of the shares in Telenor Pakistan and Orion Towers (Pvt.) Ltd., PTCL and Telenor (ASA) inked a share purchase agreement in December 2023. The transaction price of PKR 108 billion was paid in cash and without taking on any debt. After PTCL approached IFC for project funding, the project was accepted in April 2024 and given the go-ahead by the IFC Board of Directors.
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 based in the UK, are members of the consortium led by the IFC.
The event’s chief guest was Mr. Jameel Ahmad, the governor of the State Bank of Pakistan. Other attendees included Hatem Bamatraf, president and group CEO of PTCL and Ufone 4G; Khawaja Aftab Ahmed, regional director of the IFC for the Middle East, Pakistan, and Afghanistan; the British High Commissioner, ambassador from the United Arab Emirates; representatives of the consortium; and senior and top executives from the PTCL Group.
Following the signing of the finance agreement in June 2024 to secure up to USD $400 million, the event represented the most significant milestone in the realization of PTCL’s imminent acquisition of Telenor Pakistan and Orion Towers.
During the ceremony, Governor SBP, Mr. Jameel Ahmad, who was the primary guest, stated as follows: “The IFC’s investment in Pakistan’s telecom industry boosts trust in the industry’s development prospects. 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. According to Mr. Ahmad, the SBP is totally dedicated to supporting this revolutionary development and anticipates that it will have numerous positive effects on the nation.
“We are deeply appreciative of the IFC-led consortium for their pivotal role in financing this transformative deal, which marks a defining moment for Pakistan’s telecom sector,” said Hatem Bamatraf, President and Group CEO of PTCL & PTML (Ufone 4G). By enabling higher economies of scale, this financing, which is the largest single financing ever achieved in the industry, not only promotes the long-term financial stability and sustainability of the whole telecom sector, but it also strengthens PTCL Group.
The industry will thereafter be in a better position to support the advancement of society and the national economy. By taking this calculated risk, PTCL Group is demonstrating its continued dedication to provide excellent cellular and data services to an even larger client base in Pakistan in the near future.
“The telecommunications sector in Pakistan presents noteworthy prospects for expansion and investment,” remarked Khawaja Aftab Ahmed, Regional Director of the IFC for the Middle East, Pakistan, and Afghanistan. “This investment reflects IFC’s commitment to working with our partners, including the PTCL Group, Government of Pakistan, as well as co-investors BII and SRF, to bolster inclusive, high-quality digital connectivity and infrastructure in the country.”
For the benefit of the distinguished guests, the chief guest gave mementos from the PTCL Group. PTCL Group has finalized the financial agreement and is now awaiting approval from the Competition Commission of Pakistan (CCP) to complete the acquisition.
