IFC leads a consortium of lenders to raise funds
Grameenphone is set to receive $345 million funds from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to expand its coverage in rural areas.
“Improved access to mobile telephony and data services is critical for economic growth and poverty reduction. Bangladesh’s teledensity remains low by global standards,” IFC said in a statement on its website.
“Experience from rural Bangladesh shows that livelihood opportunities improve as a result of information and transactions facilitated through mobile phones,” said Kyle F Kelhofer, IFC country manager for Bangladesh.
Said to be one of the largest private sector financing packages in Bangladesh, it is touted to increase access to telecom services for both voice and data, help smaller businesses create employment and support both public and private sectors to better deliver education, health and other basic services using mobile technology.
IFC’s own investment in the package is $150 million, while the remainder came from a consortium of lenders that include Standard Chartered Bank.
“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,” said Vivek Sood, chief executive officer of Grameenphone, the country’s leading telecom operator.
Nabhash Chandra Mandal, executive member of Board of Investment, said the financing will help improve the quality of connectivity infrastructure, boost the ‘Digital Bangladesh’ initiative and contribute to the socio-economic growth of the country.
IFC has supported the growth of the telecom sector in Bangladesh through a long-term engagement with Grameenphone since 1998.
Grameenphone, which was listed on the bourses in 2009, traded at Tk 209.30 per share yesterday. The company also featured in the top turnover chart with its transaction of 23.76 lakh shares worth Tk 50 crore.
Source: The Daily Star
