09 تموز 2012
Dr. Mustafa: The Signed Agreement Demonstrates the Confidence of the Local & International Financial Institutions in Ooredoo
Dr. Hannoun: Ooredoo is keen to expand its network and reach
Ooredoo Signs a New Syndicated Loan Agreement to finance the establishment of the Gaza Strip network and the expansion of the West Bank network
Ramallah, 10-07-2012 Ooredoo the newest mobile operator in Palestine, signed a U.S. $125 million syndicated loan agreement with the International Finance Corporation (IFC) and a number of local and regional banks to finance the build out of its mobile network in the Gaza Strip, and the expansion of its existing network in the West Bank. The signed loan will also be used to re-finance the existing syndicated loan.
The IFC secured U.S. $50 million of the total loan amount, while the rest was covered by Bank of Palestine, the Housing Bank for Trade and Finance, Qatar National Bank, Cairo Amman Bank, Palestine Commercial Bank and HSBC.
The signing ceremony was attended by His Excellency the Minister of Economy Mr. Jawad Al Naji, and her Excellency the Minister of Telecommunications and Information Technology Dr. Safa Nasser Eldin, in addition to representatives from the IFC, participating banks, Qatar Telecom, Palestine Investment Fund, Ooredoo, and representatives of international institutions and regulators, in addition to a group of businessmen.
’Telecom services are a vital part of everyday life, and lowering the cost of communication and improving service levels will contribute to the continued economic development of the West Bank and Gaza’ said Dimitris Tsitsiragos - IFC Vice President for Europe, the Middle East and North Africa. ’Ooredoo has already demonstrated that the private sector can thrive and make a difference in the lives of people living in challenging environments’.
Highlighting the importance of the newly signed agreement, Ooredoo’s Chairman Dr. Mohammad Mustafa said: ’This agreement reflects the considerable level of confidence Ooredoo earned from prestigious financial institutions such as IFC, and the participating local and regional banks. Ooredoo has proved itself as a leading telecommunication company that has earned the confidence and trust of over 500 thousand subscriber’.
Dr. Mustafa added: ’this loan will raise the company’s level of competitiveness and will stimulate significant growth and development in the telecommunications sector. It will also contribute to the creation of healthy competition, which will ultimately lead to better and more affordable telecommunication services’.
Dr. Bassam Hannoun - CEO of Ooredoo expressed his delight at the signing of the agreement by saying: ’This loan reflects the commitment and keenness of Ooredoo to develop and expand its coverage to various parts of the country, particularly the Gaza Strip. This step is in line with the company’s objective of providing high quality services to subscribers across the country’.
Dr. Hannoun added: ’Ooredoo continued to achieve positive results, its subscribers base reached over 511 thousand subscriber by the end of the 1st quarter of 2012. Our services have gained wide acceptance in the Palestinian market, enabling us to achieve positive Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) that increased by 255% compared to the same period in 2011’.
Mr. Fadi Abdellatif - Finance Director at Ooredoo explained that: ’The new loan has been structured into three tranches, in accordance with the loan’s objectives; The first tranche will be used to refinance the outstanding balance of the old loan and to finance the expansion and development plans of the company’s network in the West Bank. The second tranche, the primary goal of the new loan, will be utilized to fund the network build out in the Gaza Strip once permission to enter the necessary equipment has been obtained. The third tranche aims to finance part of the requirements for the launch of third generation services (3G). Furthermore, the new loan provides the company with greater flexibility to manage its business compared to the old loan that was arranged in 2008, when the company was in its pre-launch phase and had not yet received the required frequencies, all of which coincided with the occurrence of the global financial crisis at that time’.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, IFC helped its clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving its investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.