Project detail - GRAMEENPHONE LTD.

GRAMEENPHONE LTD.

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Who is our client

Grameenphone Ltd (“GP”) is the largest mobile phone operator in Bangladesh, with 40 million subscribers and a subscription market share of 41%. GP launched operations in 1997 and is a publicly listed company: 55.8% owned by Norwegian Telenor Mobile Communications AS, 34.2% by Grameen Telecom, a non-profit institution focusing on the rural population of Bangladesh, and the remaining 10% shares traded on the Dhaka and Chittagong Stock Exchanges.

Funding objective

Given a large population of more than 160 million, steady economic growth, a low mobile penetration rate and increased data usage, the Bangladeshi mobile market is poised for continued strong growth. The USD 1.2 billion project involves the payment of 2G/3G license renewal and investments related to network and capacity expansion and the introduction of 3G to the market, resulting in improved connectivity, coverage and additional services. The project is largely funded by internal cash generation with additional financing from term loans from international development finance institutions and local banks.

Why we fund this project

The project has high development impact as it helps to increase access to telecommunication and data services - especially in rural areas - promote energy efficiency and raise additional revenues for the Government of Bangladesh (GP is the largest tax payer in the country).

Region
Asia
Country
Bangladesh
Sector
Infrastructure, Manufacturing and Services
Signing date
5/2/2013
Total FMO financing
USD 40.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B