Bangladeshi operator Grameenphone has secured a US$345m financing package arranged by International Finance Corporation (IFC), part of the World Bank Group.
IFC contributed US$150m to the transaction while a syndicate of development banks – Proparco,…
Bangladeshi operator Grameenphone has secured a US$345m financing package arranged by International Finance Corporation (IFC), part of the World Bank Group.
IFC contributed US$150m to the transaction while a syndicate of development banks – Proparco, DEG, FMO, CDC and OFID – and Standard Chartered provided the other US$195m.
Grameenphone will use the capital to improve its coverage in rural areas, widening access to mobile telephony and data services.
According to the IFC statement the Telenor-controlled telco will also invest in “improving energy efficiency, promoting employment opportunities and sustainable development”.
No further details of the financing were disclosed.
Vivek Sood, chief executive officer of Grameenphone, said: “The potential to expand telecom services in Bangladesh is huge and IFC’s financing will be crucial in helping us improve connectivity and coverage in rural areas, boosting digital inclusion.”
Nabhash Chandra Mandal, an executive member of Bangladesh’s Board of Investment, commented: “The financing by global investors and lenders will help to improve the quality of connectivity infrastructure, boost the Digital Bangladesh initiative and contribute to the socio-economic growth of the country.”
Grameenphone and IFC have a long-term relationship which dates back to 1998.
The wireless operator is the largest in Bangladesh with a market share of 42%. It is 55%-owned by Norwegian incumbent Telenor and posted revenues of US$1.1bn last year.
IFC describes itself as the largest global development institution focused exclusively on the private sector.
