Tanzania Phone Company Secures $270 Million Loan for Expansion

For the second time in two years pan-African based telecommunication firm Celtel Tanzania Limited has secured a $270 million syndicated loan from local and international lenders to support its network expansion.

Company finance director Heiko Schlittke told APA on Sunday that Celtel Tanzania wants to sustain its leadership in network coverage throughout Tanzanian.

“Celtel Tanzania is proud to have closed this deal with local and international lenders to continue bringing mobile communication to more Tanzanians,” he said.

“This not only reflects on the success and future prospects of Celtel Tanzania, but is also a sign of the confidence that the international and local finance community has in the growing Tanzanian economy.”

The number of subscribers for cellular phones in Tanzania has now reached 4 million, with more expected to use these services once a greater part of the country is covered.

In 2006, Celtel secured $85 million syndicated loan from eight banks for expansion.

In the latest funding, Standard Bank Plc is the global arranger while Stanbic Bank Tanzania Ltd and Citi Tanzania Ltd are local arrangers.

The $270 million tranche lenders are FMO, Development Bank of Southern Africa, DEG, Proparco, Swedfund, Bank of Baroda, Standard Chartered, Standard Finance Ltd and Citibank.

The Tanzania-shilling tranche lenders are the National Microfinance Bank, EDC, Citibank, Stanbic Tanzania, CRDB, Standard Chartered, Tanzania Investment Bank, Exim Bank and Bank of Baroda.

The syndicated medium-term-facility agreement, which is composed of 60 percent US dollars and 40 per cent Tanzanian shillings, was signed in Dar es Salaam on January 22 this year.

Source African Press Agency

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