Myanmar telecoms infrastructure provider Pan Asia Majestic Eagle (Pamel) has secured US$85m in what it describes as the Southeast Asian nation’s first, non-recourse, cross-border financing.
The loan facility agreement, which will support Pamel’s…
Myanmar telecoms infrastructure provider Pan Asia Majestic Eagle (Pamel) has secured US$85m in what it describes as the Southeast Asian nation’s first, non-recourse, cross-border financing.
The loan facility agreement, which will support Pamel’s rollout of tower site infrastructure across the country, was arranged by DBS, ING, OCBC, Standard Chartered and Sumitomo Mitsui, the company said in a statement.
Pamel managing director Peter Egbertsen said the “landmark” transaction demonstrates international banks’ confidence in both the company and Myanmar.
“These five banks have been incredibly supportive to our company throughout our financing discussions and we are honoured to be the first Myanmar company to obtain financing of this type from such strong banking institutions in the region.”
Pamel said the loan will ensure the development of Myanmar’s mobile telecoms network continues according to plan, noting that it also paves the way for the expansion of commercial bank financing in the country.
U Than Htun Aung, director of state-owned group Myanmar Posts & Telecommunications (MPT), commented: “We are very pleased that Pan Asia Majestic Eagle has been able to secure this financing as part of their development of telecommunications infrastructure in Myanmar and we value the support they are providing to Myanmar’s telecommunications network providers as they implement our vision for a modern Myanmar.”
MPT was the country’s sole operator before the auction as well as its telecoms regulator.
Yangon-based Pamel was established in 2013 to serve as an independent provider of passive telecoms infrastructure to the local sector, which opened up to foreign operators last year.
Norway’s Telenor and Qatar-based Ooredoo were awarded mobile licences in the country’s first competitive 3G auction.
Telenor switched on its network in the city of Mandalay on 27 September, the first phase of its planned nationwide rollout. Coverage is set to be expanded to Nay Pyi Taw and Yangon within weeks, followed by other cities and regions as more towers are completed.
Meanwhile, Japanese telco KDDI and conglomerate Sumitomo Corp recently announced plans to partner with MPT to offer mobile services in the country.
Last month, the CFO of Thai telco True Corp, Noppadol Dej-Udom, was quoted saying that the company’s talks to transform ISP Yatanarpon Teleport (YTP) into a mobile operator had been suspended after failing to reach a deal.
He reportedly added that his company feels its offer is superior and will wait for YTP to return to it.