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HBL to extend Rs 2 bn finance to GSM cellular phone project

RECORDER REPORT

KARACHI: Habib Bank Limited (HBL) has agreed to extend a financing facility of Rs 2 billion as a fixed term loan for seven years for a GSM cellular phone project of Pakistan Telecommunication Company Limited (PTCL).

According to the press release of the HBL, this agreement was signed in Islamabad on Thursday by President Zakir Mehmood and Asad Amir Khan of HBL while on behalf of Pak Telecom Mobile Limited (PTML) a subsidiary of PTCL, its CEO Akhtar A Bajwa, and Arshad Khan initialled the document. PTCL chairman, Naseem S. Mirza and directors and senior officials of PTCL and PTML were also present on the occasion.

According to the contract, the HBL would extend long-term financing facilities for the substantial debt portion of the project at a very competitive rate. Habib Bank took a leading initiative for the financing this upcoming cellular company right from the beginning due to the aggressive marketing and its competitive strength.

Zakir Mehmood emphasised the importance of the telecom sector in the current economic scenario and reiterated HBL's commitment to aggressively support this fast growing sector.

HBL has already taken significant initiatives in this regard and has undertaken major business from the main players of the said sector. PTML is another valuable addition in its existing portfolio.

Naseem S. Mirza expressed his satisfaction and pleasure on the professional way this deal was handled by HBL and hoped for a long-term mutually beneficial relationship.

PTML has also signed a parallel agreement with Nortel Networks for the supply of digital wireless network infrastructure equipment, including intelligent network, billing and customer care, voice mail transmission. The service is scheduled to be launched later this year.