Jazz has secured a Rs50 billion syndicated credit facility from a banking consortium led by Habib Bank (HBL). This 10-year facility will be used to finance the company’s ongoing 4G network rollouts and technology upgradation.

This is the first of its kind facility extended to the telecom sector in terms of the amount and tenor. The facility is fully subscribed by HBL, the consortium’s investment agent and mandated lead arranger. Other banks who are also acting as the mandated lead arrangers and advisors on this deal include the United Bank, National Bank of Pakistan, MCB Bank, Bank Alfalah, Allied Bank, Askari Bank, Bank of Punjab, Meezan Bank and Faysal Bank.

As the country’s leading digital services provider, Jazz has over 69 million subscribers and more than 28 million 4G users nationwide. Over a period of two years, the company has invested $462 million on 4G infrastructure. The Pakistan Credit Rating Agency Limited (PACRA) has also recently upgraded Jazz’s long-term rating to ‘AA’ with a stable outlook, depicting the company’s strong financial depth in the industry.

“We continue to drive the digital Pakistan agenda by improving digital infrastructure, bridging the digital divide and focusing on financial inclusion. We are enabling societies by investing in entrepreneurship, digital skills and literacy. This facility is an integral step towards ensuring that people are not bound by the limitations of geography, gender, or socioeconomic background, in harnessing the power of the internet. A transaction of this size is a testament to the trust the financial community has on Jazz’s strong financial profile and its leadership position in the telecom industry,” said Gabor Kocsis, Jazz Chief Financial Officer.

Muhammad Aurangzeb, President and CEO, HBL, stated that “we are delighted to have led this landmark transaction in the Telecom sector. HBL has a long-standing relationship with Jazz spanning more than two decades. Such transactions serve HBL’s strategic priority of supporting the promotion of digitalization across the country while underscoring HBL’s commitment to stand by the robust and progressive telecom sector of Pakistan.”

The writer is a member of staff
The reporting desk can be reached at info@thecorrespondent.com.pk

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