Warid gets a $500m loan for expansion in Pakistan
Warid Telecom (Warid), the fastest growing mobile cellular operator in Pakistan, has signed a loan agreement for $500 million to finance its nationwide EDGE-compliant mobile network expansion supplied by Ericsson in Pakistan.
The signing ceremony was held in Abu Dhabi which was attended by top global executives of EKN, ABN Amro Bank N.V., Standard Chartered Bank PLC, Ericsson, and Warid Telecom.
The $500 million loan mainly supported by Exportkreditn¤mnden (EKN) Sweden (The Swedish Exports Guarantee Board), is structured as a buyer credit facility and arranged by ABN Amro Bank N.V. and Standard Chartered Bank PLC as the Joint Lead Arrangers.
In addition, ABN Amro Bank N.V. is the Facility Agent and EKN is the agent, while Standard Chartered Bank PLC is the Intercreditor Agent. The disbursement of the facility is subject to necessary approvals including the approval from the State Bank of Pakistan.
The loan will be utilised by Warid for financing its GSM network equipment supplied by Ericsson in 2006 and 2007. Ericsson has been the key network equipment supplier for Warid. The financing will facilitate Warid’s expansion plans and enhance its mobile network capacity. It will also further enable Warid to leverage its strengths and take advantage of the huge market potential and customer growth rates in Pakistan.
The transaction carries a few firsts: The Warid financing is the single largest EKN-backed telecom financing, not just in Pakistan but also throughout the Middle East and Asia; It is the largest corporate Export Credit Agency (ECA) backed transaction since 1998 and the largest cross-border capital expenditure related telecom debt financing into Pakistan.
Wateen Telecom & Taavun is currently undertaking the rollout of new mobile networks in Bangladesh and the Republic of Congo, alongwith the recent acquisition of a telecom licence in Uganda.
The group is also in the process of setting up a Global IT solutions company — Raseen in Pakistan — in partnership with Sir Terence Mathews, Chairman of the international IP Communications giant Mitel Networks Corporation.
Warid Telecom is owned by the Abu Dhabi Group — one of the largest groups in the Middle East. The group is led by Shaikh Nahyan bin Mubarak Al Nahyan and it is the single largest foreign investor group in Pakistan.
Source- khaleejtimes Wireless Mobile Telecom
