Grameen Phone signs long-term international loan agreement
Fornebu
2 minute read
Grameen Phone in Bangladesh has signed a 55 million US dollar financing package agreement with the Asia Development Bank (ADB), International Finance Corporation (IFC) and the Commonwealth Development Corporation (CDC). The loan and equity agreement was signed in Dhaka on Wednesday 7th July and provides for a 16,67 million US dollar loan and an equity investment of 1,57 million dollar each from IFC, ADB and CDC. Telenor is the majority shareholder in Grameen Phone with 51%.
It is the first time the three international financial institutions have invested in a loan agreement together. This is one of the largest private sector loans made in Bangladesh and is described by the partners as an important contribution to the financial expansion and infrastructure in the country.
Grameen Phone has a dual purpose: to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role. This is why Grameen Phone, in collaboration with Grameen Bank, is aiming to place one telephone in each village to contribute significantly to the economic uplift of the rural areas.
Bangladesh with 125 million inhabitants, has one of the lowest telephone penetration rates in the world. The country has three telephone lines per 1,000 people, with most subscribers in the larger cities. Grameen Phone started its operation on March 26, 1997, and has since become the largest cellular operator in the country by pursuing a low tariff strategy. With 40 000 subscribers, Grameen Phone has as many subscribers as the three other operators together, and covers the three biggest cities Dhaka, Chittagong and Kulna and the connection between them.
Grameen Phone has a dual purpose: to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role. This is why Grameen Phone, in collaboration with Grameen Bank, is aiming to place one telephone in each village to contribute significantly to the economic uplift of the rural areas.
Bangladesh with 125 million inhabitants, has one of the lowest telephone penetration rates in the world. The country has three telephone lines per 1,000 people, with most subscribers in the larger cities. Grameen Phone started its operation on March 26, 1997, and has since become the largest cellular operator in the country by pursuing a low tariff strategy. With 40 000 subscribers, Grameen Phone has as many subscribers as the three other operators together, and covers the three biggest cities Dhaka, Chittagong and Kulna and the connection between them.