Abu Dhabi: Warid Telecom, part of Abu Dhabi Group, on Friday sealed a $500 million (Dh1.835 billion) financing agreement with Standard Chartered Bank and ABN Amro Bank, and backed by Sweden's Export Credit Agency.
The loan willr finance Warid Telecom's GSM network expansion in Pakistan and is the largest cross-border capital expenditure related to telecom debt financing in Pakistan.
Sweden's Ericsson is supplying the GSM network equipment. "This financing agreement demonstrates the strong cooperation between banks and EKN in sharing risks through a superior model of financing," said Shaikh Nahyan Bin Mubarak Al Nahyan, UAE Minister of Higher Education and Scientific Research and Chairman of Abu Dhabi Group.
"Warid Telecom has strengthened its position in Pakistan and plans to expand its network by providing cutting edge technologies to customers in urban and rural areas," Shaikh Nahyan said.
The financing will also facilitate Warid's roll-out into more cities in Pakistan and take advantage of the huge market potential and customer growth rates, he added.
Richard Meddings, group executive director of Standard Chartered, and Mohammad Aurangzeb, executive vice-president of ABN Amro, signed on behalf of their banks.
Launched in May 2005, Warid Telecom has a current subscriber base of seven million in Pakistan.
The long-term facility is structured as a buyer credit facility. It is the single largest EKN-backed telecom financing not just in Pakistan but also in the Middle East and Asia.
"This is our first guarantee with Warid Telecom and certainly not the last and we are impressed by its investment plans," said Olof Rydh, director-general of EKN.
EKN's financing is backed by the Swedish government.
Last week, Warid Telecom secured a syndicated loan of $60 million (Dh220 million) from a consortium of 24 Bangladeshi banks and financial institutions.
