- The financing package provided by the IFC-led consortium will be used to support the acquisition of Telenor Pakistan and Orion Towers.
- This will accelerate innovation in high-quality, affordable digital products and services in Pakistan.
26 September 2024 – British International Investment, the UK’s development finance institution and impact investor, has committed $50 million via a financing package led by IFC to Pakistan Telecommunication Company (PTCL). This will be used to finance PTCL’s acquisition of Telenor Pakistan Private Limited and Orion Towers Private Limited.
The seven-year loan to PTCL comprises $224.5 million from IFC’s account and managed funds, $50 million from BII and $125.5 million from other investors.
Through the acquisition, PTCL plans to merge its mobile subsidiary Pak Telecom Mobile Limited (PTML or Ufone 4G) with Telenor Pakistan, unlocking operational and financial synergies, boosting digital connectivity, and accelerating innovation in high-quality, affordable digital products and services.
It is also expected to enable increased investments in digital infrastructure, especially in underserved regions, to boost network coverage and optimize the customer experience.
While Pakistan has made progress in developing its telecommunications sector, substantial investments are still needed to boost connectivity and address regulatory, coverage, and affordability issues. The country’s fixed broadband sector penetration rate and unique mobile subscriber penetration rate—the number of people who own a mobile phone—are both below the regional averages.
Sarah Mooney, Deputy High Commissioner Karachi and UK Trade Director for Pakistan, said:
“The UK is committed to driving economic development and addressing challenges that hold back growth. I am delighted to see BII’s new investment in Pakistan’s telecoms sector, which is a key driver of economic activities. Through collaboration, we can channel more investments into this sector for better digital connectivity.”
Habib Yousuf, Regional Director, South Asia at BII said:
“Digital connectivity is critical to provide access to essential services for communities across Pakistan, create jobs and support economic growth. Therefore, it is our priority as the UK’s DFI to support the growth of the telecoms sector, by enabling more digital infrastructure investments and increasing access of quality telecoms services to millions of people.”
Hatem Bamatraf, President and Group CEO, PTCL & PTML 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. Through this strategic move, PTCL Group remains fully committed to delivering high-quality cellular and data services to an even wider customer base across Pakistan soon.”
