(Please note the information given below has been taken from the Wataniya press release and the pictures have been provided by FMFM)
Landmark Cross-Border Private Sector Syndicated Loan Supports Ongoing Development of State-of-the-Art Mobile Network with Qtel International
(Some of the parties involved in the WPT finance)
Ramallah, West Bank
Wataniya Palestine Telecom (WPT), Palestine’s second mobile operator, today announced its success in securing US$85m further funding to support the next phase of its mobile telephony network build-out. The first-of-its-kind private sector loan draws funding from a wide range of leading international banks and local Palestinian banks, as well as multilateral institutions, providing material support for the creation of a new infrastructure for mobile phone services within Palestine.
It is the first agreement in this field to deliver funding for development in Palestine from international and local private sector sources.
The US$85m Senior Secured Syndicated Facility loan was agreed between WPT and the lender group comprising of the Bank of Palestine Plc, Quds Bank, Commercial Bank of Palestine Limited, Ericsson Credit AB, International Finance Corporation, and Standard Bank Plc. Exportkreditnämden, the Swedish Export Credits Guarantee Board and GuarantCo, a specialist guarantor of infrastructure financing in low-income countries, are acting as guarantors to the Syndicated Facility. Standard Bank Plc is acting as a Global-Coordinator for the Facility.
Executives at the signing ceremony said the loan reflected international confidence in Palestine’s potential for growth and development and demonstrates the local lenders ability to support initiatives of this significance. The US$85m Senior Secured Syndicated Facility will play a key role in accelerating WPT’s development of its wireless network, which will increase access to high quality telephony across the general population and provide support and services for communities who have previously not had access to mobile communications.
In addition, the investment funding will help upgrade the overall quality and performance of the infrastructure for the Palestinian people. By deploying Ericsson AB equipment supported by its network infrastructure expertise, WPT will be able to offer a world-class telecommunications service, including a range of products that have previously been unavailable to customers.
WPT is owned and controlled by the Palestine Investment Fund (“PIF”), Palestine’s leading investment company, and Wataniya Telecom of Kuwait. Wataniya Telecom is majority-owned by Qatar Telecom Q.S.C. (“Qtel”), the diversified telecommunications group offering world-class communication services in 17 countries, which has pledged ongoing support for WPT’s efforts in Palestine.
Dr. Nasser Marafih, CEO, Qtel International, said: “Qtel is a firm supporter of long-term investment in Palestine’s communications infrastructure through Wataniya and the agreement announced today is a key milestone in that development process. We believe that the people will benefit significantly through the social and economic opportunities delivered by an advanced mobile communications network.”
“Qtel has set itself the target of becoming one of the world’s top 20 telecommunications companies by 2020, and our operations in high potential markets like Palestine will make a key contribution to that goal,” he added.
Dr. Mohammad Mustafa, Chairman and CEO of the Palestine Investment Fund stated, “This deal is the first of its kind in Palestine’s history. It demonstrates a vote of confidence by both international and local lenders in the future of the Palestinian economy and in Wataniya’s commercial success. PIF is proud of its role as a co-founder of WPT, our largest economic project since the establishment of the Palestinian Authority. This reflects our commitment to invest in strategic projects that help build an independent and vibrant Palestinian economy.”
“We are equally proud that our partnership with Wataniya Telecom and Qtel in this venture will offer customers high quality services and excellent value for money, while generating jobs and business opportunities for the small and medium businesses in Palestine,” he added.
Allan Richardson, Chief Executive Officer for WPT commented: “This is an important strategic step in the launch of WPT’s mobile network, which will aid in the economic development of Palestine, fuel job creation, and most importantly, provide choice and accessibility to a high-quality mobile network for the people of Palestine. We are excited to have such a prominent group of lenders bring their support and endorse the development of this significant project in Palestine. Our hope is that this will pave the way for future financing deals of a similar nature to help Palestine’s economy and growth,” concluded Richardson.
Nina Triantis, Global Head of Telecoms, Standard Bank Plc, stated: “This landmark transaction is the first cross-border syndicated loan to Palestine, and importantly includes commercial bank participation. Standard Bank is proud to have co-ordinated and arranged the Senior Secured Syndicated Facility and to be associated with Wataniya Palestine Telecom at this exciting stage of the company’s development.”
Qtel and PIF have invested more than US$ 200 million in Wataniya Palestine Telecom to finance license payments, set up the company and begin the build-out of the mobile telephony network. The launch of commercial services is anticipated by Wataniya Palestine Telecom in 2009.
(Mr.Chris Vermont speaking on behalf of GuarantCo at the Wataniya press conference)
About Wataniya Palestine Telecom:
WPT received its license in September 2006, in an open tender issued by the Palestinian National Authority to build and operate the second GSM network in Palestine. Wataniya Palestine Telecom was formed in partnership between the Wataniya Telecom of Kuwait (majority owned by Qatar Telecom (Qtel)), which owns 57% of the company, and the Palestine Investment Fund, which owns 43%.
Qtel’s international expertise brings to Wataniya Palestine Telecom and to Palestine the commitment to achieve the highest standards of network quality and coverage for the people of Palestine, while balancing between commercial initiatives and an emphasis on establishing sustainable corporate social responsibility programs for the people of Palestine.
About Qatar Telecom
Qatar Telecom (Qtel) is a diversified telecommunications group with three business lines including consumer telephony, consumer broadband and corporate managed services, and is committed to expansion in line with the company’s strategic vision of becoming a global top 20 telecommunications provider by the year 2020. Qtel is a full-service telecommunications service provider in the state of Qatar. Over the past two years, Qtel has expanded its geographic footprint from 2 to 17 countries within the Middle East and Asia, with more than 57 million customers.
About the Palestine Investment Fund (“PIF”)
PIF, is a publically owned independent Palestinian investment company, headquartered in Ramallah. PIF works towards building an independent, viable and sustainable Palestinian economy. It focuses on developing and investing in strategic projects in vital sectors in Palestine. PIF is a founder and a key shareholder of many of the leading Palestinian companies such as Wataniya Palestine (Telecom), APIC (investments), PCSC (cement), PTIC and Grand Park (hotels) and NAPCO (manufacturing). In addition, PIF, working with local, regional and international partners, is developing a number of strategic projects that will have far reaching impact on the Palestinian economy, such as the 700 million dollar Gaza gas project, a 500 million dollar mortgage finance company, the 400 million dollar Ersal commercial center in AlBeireh-Ramallah and the 200 million dollar Al-Reehan new planned community in Ramallah. For more information, please visit: www.pif.ps
About Standard Bank
Standard Bank is a leading African banking group focused on emerging markets globally. It has been a mainstay of South Africa's financial system for over 145 years, and now spans 17 countries across the African continent. Its international expansion has taken it to 20 countries outside Africa including Brazil, Russia and China. Its headquarters are in Johannesburg and it is listed on the Johannesburg Stock Exchange. Standard Bank's Corporate and Investment Banking division is a leading global emerging markets corporate and investment bank and offers its clients banking, trading, investment, risk management and advisory services in developing economies throughout the world. It has specific sector expertise in industries relevant to its global footprint, with strong sector value propositions in: mining & metals; oil, gas & renewables; telecommunications & media; power & infrastructure; agribusiness and Financial Institutions.
Standard Bank Plc in London is the bank's principal international subsidiary. It is authorised and regulated by the Financial Services Authority, and is a member of the London Stock Exchange.
About Bank Of Palestine
Bank of Palestine PLC is the first and largest national bank. BOP was founded in 1960 and has the widest banking network of 33 branches and sub-branches across the nation. BOP provides a wide range of banking services to meet both retail and corporate customer needs and expectations.
Financial highlights as of September 2008 show that total assets exceeded $1 Billion, deposits increased to $804,299,822 and credit facilities $307,935,632. Moreover, the banks reported a growth in third quarter profits reaching $17,926,239. After the recent IFC investment in BOP the paid capital was increased from $77 to $81 million. BOP has 14% market share of total deposits and loans in the banking sector.
(A view of Ramallah)