KARACHI: Jazz has successfully secured the largest private sector syndicated credit facility, totalling up to Rs75 billion to Enhance 4G Network and Promote Digital Inclusion Nationwide. This is the Largest Long-Term Private-Sector Syndicated Credit Facility.
The banking consortium was led by The Bank of Punjab (BoP), and this 10-year financing arrangement will significantly support Jazz’s ongoing 4G network expansion and technological upgrades while supporting its new ServiceCo model.
The signing ceremony was held on Friday at a local hotel in Karachi and attended by Kaan Terzio lu, VEON Group CEO, Aamir Ibrahim, CEO of Jazz, Zafar Masud President Bank of Punjab and the Presidents of participating banks including Irfan Siddique President Meezan Bank, Rizwan Atta CEO Bank Islami, Farid Ahmed Khan, Group Chief Corporate and Investment Banking BoPalong with their representatives and bankers.
The consortium includes prominent financial institutions acting as mandated lead advisors and arrangers, namely Habib Bank Limited, Bank Alfalah Limited, Meezan Bank Limited, MCB Bank Limited, Allied Bank Limited, The Bank of Punjab, Askari Bank Limited, Habib Metropolitan Bank, Soneri Bank Limited, Bank Islami Pakistan Limited and MCB Islamic Bank Limited.
Jazz, a major investor in Pakistan with over 30 years of history and investments exceeding $10.6 billion, leads the industry with a 45 percent revenue market share and serves over 71.4 million subscribers, including 49 million 4G users.
The company recently announced a major shift from a traditional mobile operator to a ServiceCo structure, creating Strategic Business Units (SBUs) focused on digital financial services, software & analytics, data centers & cloud, and entertainment & digital platforms.
On the occasion, Aamir Ibrahim, CEO of Jazz, said that by investing in cutting-edge digital infrastructure, Jazz is committed to bridging the digital divide and promoting financial inclusion across the nation. He said that this transaction reflects the financial community’s trust in Jazz’s solid market reputation and our leadership on the digital front. “It is a crucial step toward ensuring that all Pakistanis, regardless of location, gender, or socioeconomic status, can harness the transformative power of the internet and digital services”, he added.
Zafar Masud, President and CEO of The Bank of Punjab, said that leading this landmark transaction in the telecom sector exemplifies our strategic focus on digital transformation in Pakistan.
“Our partnership with Jazz underscores BoP’s dedication to advancing technological progress and supporting the growth of the telecom industry”, he said. This deal is a testament to the banks’ commitment to driving innovation and fostering economic development in the country he added. In June 2021, Jazz secured Rs50 billion 10-year syndicated credit facility from a banking consortium led by Habib Bank Limited.
Earlier on, Jazz announced the successful closure of its Rs15 billion Sukuk led by Askari Bank Limited, marking a milestone as the first-ever and largest short-term unsecured Sukuk by a telecom operator in Pakistan, which won global accreditations from EuroMoney Islamic Finance Awards and Asian Banking & Finance, and is expected to boost the use of Shariah-compliant financial instruments within Pakistan’s capital markets.
Copyright Business Recorder, 2024
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