KARACHI: Pakistan Telecommunication Company Limited (PTCL) and a consortium led by the International Finance Corporation (IFC) gathered in Karachi to celebrate the landmark financing agreement for PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited.
In December 2023, PTCL signed a share purchase agreement with Telenor (ASA) to acquire 100% of Telenor Pakistan and Orion Towers for PKR 108 billion (on a debt-free, cash-free basis).
Seeking financial backing for this venture, PTCL approached IFC, which approved the project in April 2024, with support from its Board of Directors. The IFC-led consortium includes the Silk Road Fund (SRF), a Chinese state-owned investment fund, and British International Investment (BII), the UK’s development finance institution.
The event featured Mr. Jameel Ahmad, Governor of the State Bank of Pakistan, as the chief guest, alongside PTCL President & Group CEO Hatem Bamatraf, IFC Regional Director Khawaja Aftab Ahmed, the UAE Ambassador, the British High Commissioner, and other consortium representatives and senior PTCL executives. This gathering marked a crucial milestone in PTCL’s acquisition journey, following the securing of up to USD $400 million in financing in June 2024.
Governor Ahmad highlighted the significance of IFC’s involvement in Pakistan’s telecom sector, stating, “This financing underscores confidence in the growth potential of our telecom and digital landscape. The sector is vital for our economy, and its development will contribute to the country’s prosperity. The SBP is dedicated to facilitating this transformative initiative, which we anticipate will yield broad benefits.”
Hatem Bamatraf remarked, “We are grateful to the IFC-led consortium for their essential role in financing this transformative deal, representing a defining moment for Pakistan’s telecom sector. This marks the largest single financing ever secured in our industry, enhancing PTCL Group’s strength and promoting the long-term financial stability of the telecom sector, ultimately benefiting the national economy and societal progress. We remain committed to delivering high-quality cellular and data services to a broader customer base across Pakistan.”
Khawaja Aftab Ahmed emphasized, “Pakistan’s telecommunications market is ripe with growth opportunities. This investment reflects IFC’s commitment to enhancing inclusive, high-quality digital connectivity and infrastructure through partnerships with PTCL Group, the Government of Pakistan, and co-investors BII and SRF.”
At the event, the chief guest presented memorabilia to attendees on behalf of the PTCL Group. With the financing deal finalized, PTCL Group is now awaiting approval from the Competition Commission of Pakistan (CCP) to complete the acquisition.
