Jazz has received a syndicated loan of Rs 50 billion from a banking consortium led by Habib Bank Ltd for a period of ten years. This loan will fund the company’s ongoing 4G network rollout and technology upgrades.
This is the first of its kind Loan offered for the telecommunications sector in terms of cost and lifespan. The Syndicate Loan was fully subscribed by HBL, the investment agent of the consortium and other Banks who were members of syndicate. Other banks that are also acting as Designated Lead Arrangers and Advisors for this transaction include United Bank Limited, National Bank of Pakistan, MCB Bank, Alfalah Bank, Allied Bank Limited, Askari Bank Limited, Bank of Punjab, Meezan Bank Limited and Faisal. Bank Limited.
Currentlu, Jazz has over 69 million subscribers and over 28 million 4G users worldwide. In preceding couple of years, the company has invested $ 462 million in 4G infrastructure. While external credit rating of the company was also upgraded by Pakistani Ratings Agency Limited (PACRA) with long-term rating now standing at ‘AA’ with a stable outlook, reflecting the company’s strong financial strength in the industry.
HBL, the largest bank in Pakistan, with more than 1,650 branches, more than 2,100 ATMs and more than 54,000 branchless banking (HBL) agents and more than 23 million clients in 14 countries.
Speaking on the occasion, HBL President and CEO Muhammad Aurangzeb said:
We are delighted to have this historic deal in the telecommunications sector. HBL has a longstanding relationship with JAZZ spanning over two decades. For the bank, these transactions serve as a strategic priority for HBL, which is to support the advancement of digitization across the country and underscore HBL’s ambition to become a strong and progressive telecommunications sector in Pakistan.
Gabor Kocsis, CFO at Jazz, said:
We continue to drive Pakistan’s digital agenda by improving digital infrastructure, bridging the digital divide and focusing on financial inclusion. We empower communities by investing in business, digital skills and literacy. This is an integral step Towards ensuring that people are not bound by geographic, gender or socioeconomic constraints when using the power of the Internet. An agreement of this magnitude is a testament to the confidence of the financial community in Jazz’s strong financial position and leadership in the telecommunications industry.
Latest posts by News Desk (see all)
- PSX Weekly Review: 22-September-2023 - September 22, 2023
- Fatima Fertilizer to invest PKR 7.6bn in REITs - September 22, 2023
- EuroZone Economic contraction in September - September 22, 2023
