Mobile phone operator Banglalink, owned by Norwegian-Russian telecom firm Vimpelcom, has planned to raise $300 million from foreign investors by issuing bonds for expanding its network.
The second largest mobile phone company of the country submitted an application with the Bangladesh Securities and Exchange Commission last week seeking approval to go for the issuance of bonds, said BSEC officials.
‘The Banglalink proposal is under review. The interest rate for the bond will be determined after a road show if the regulator accepts the company application,’ a senior BSEC official told New Age on Wednesday.
According to the Banglalink’s proposal, the company will raise the money for expanding its network.
The company is set to get a licence for 3G mobile service from the Bangladesh Telecommunication Regulatory Commission in next few days.
The BTRC will hold an auction for four 3G licences on September but four companies are in the race for the same number of licences.
A Banglalink official told New Age that the issuance of international bonds worth $300 million by the
company would be
the largest of its kind in Bangladesh.
‘Banglalink has been significantly investing in this [telecom] market for the last couple of years in order to ensure the best services for our ever growing customers. We are looking forward to the investments that will be made in the fields of network enhancement, upgradation and other areas,’ he said.
The subscribers’ base of Banglalink swelled to 2.73 crore in July from 2.70 crore in the previous month as the company added 3 lakh new subscribers in the month.
The leading mobile company Grameenphone
recently took $345 million in loan from a syndication of different financial
institutions led by International Finance Corporation.
IFC has provided $150 million while the rest came from a consortium of lenders, including development finance institutions Proparco, DEG, FMO, CDC and OFID and one commercial bank, Standard Chartered Bank.
GP said that it would expand its coverage in rural areas and improve energy efficiency with the loan.
-With New Age input
