Pioneering mobile operator Celltel Lanka Ltd picked up a US$ 20 mn cheque from a syndication of banks to deploy its network islandwide. Pioneering mobile operator Celltel Lanka Ltd picked up a US$ 20 mn cheque from a syndication of banks to deploy its network islandwide. Led and co-arranged by Hatton National Bank, the five year loan priced at three month treasury bill rate plus a margin. Three month treasuries currently trade at 7.60 percent in the secondary market.
Under the new funding arrangement, Celltel’s existing US$ 20 mn debts will be re-packaged and serviced at a lower rate, while the cellular operator itself will chip in with internally generated cashflows and supplier credit.
The loan carries an 18 month grace period, with a partial guarantee from ABN Amro Bank NV.
In addition to the loan, Celltel’s parent company, Millicom International Cellular S.A., will also raise its US$ 75 mn investment, with a fresh US$ 6 mn equity injection.
Co-financiers HNB and National Savings Bank, have put in US$ 6 mn each. DFCC Bank has pledged US$ 5 mn while NDB will put up US$ 3 mn.
Under the fifth phase, Celltels GS