The telecom sector especially the mobile telecom market has grown exponentially over last decade, IDCOL has supported this growth in the telecommunication sector of the country through investing BDT 4,150millionin the following projects:
Bond Subscription for financing of expansion and up-gradation of network coverage
Project: Bond Subscription for financing of expansion and up-gradatio
Borrower: Banglalink Digital Communications Limited
Location: Not Applicable
Sponsor: Global Telecom Holding S.A.E.
COD: Not Applicable
IDCOL Loan: BDT 1000 million
Project Description: IDCOL invested BDT 1,000 million in issuance of senior, secured and coupon bearing bonds by Banglalink Digital Communications Limited (BDCL) with an aggregate value of BDT 4,250 million on a private placement basis to domestic institutional investors in Bangladesh for a term of up to 4 and a half years. The bond issue was part of BDCLs capital expenditure financing plan for 2009-10, and funds raised were used mainly to support network expansion and up-gradation of its telecommunication services. The bond which was issued in 2010 will mature in June 2014.
Project Description: The proposed expansion project was aimed at increasing existing subscriber capacity from 120,000 to 360,000 people. Based on CDMA 20001 x technologies, the project setup necessary infrastructure facilities in four zones of Bangladesh. A total of BDT 1.01 billion was raised under a syndicated facility arranged by Infrastructure and Industrial Development Finance Company Limited (IIDFC). Major participants of the syndication included National Bank Limited, Uttara Bank Limited, United Commercial Bank Limited, EXIM Bank Limited, Standard Bank Limited, Agrani Bank, Premier Bank Limited and Mercantile Bank Limited. Under the agreement, IDCOL has provided BDT 50 million term loan to Ranks Telecom Limited.
Network Expansion Project of Citycell
Project: Network Expansion Project of Citycell
Borrower: Pacific Bangladesh Telecom Ltd. (PBTL)
Location: Not Applicable
Sponsor: Pacific Motors Ltd., SingTel Asia Pacific Investments Pte Ltd. and Far East Telecom Ltd.
COD: Not Applicable
IDCOL Loan: BDT 360 million and USD 10 million
Project Description: IDCOL extended total BDT 360 million to network expansion project of PBTL under two different facilities in 2004 and 2006 respectively. The earlier facility has been completely repaid and the second facility will expire in 2014. IDCOL, along with Citibank N.A., had also co-arranged USD 30 million Term Loan Facilities for the network expansion project of Pacific Bangladesh Telecom Limited (PBTL). Under an International Dollar Loan Agreement signed among PBTL, IDCOL, Citibank N.A. and IDCOL provided USD 20 million and USD 10 million, respectively.
Set-up and operations of a wireless broadband network
Project: Set-up and operations of a wireless broadband network
Borrower: Banglalion Communications Ltd. (BCL)
Location: Banglalion Communications Ltd. (BCL)
Sponsor: Golden Horizon Ltd., Glory Industries Ltd., Delta Fashions Ltd. and Bangladesh Industrial Finance Company Ltd. [Major (retired) Abdul Mannan, Chairman]
COD: FY2010
IDCOL Loan: BDT 300 million
Project Description: IDCOL has financed BDT 300 million to BCL under the syndicated term loan facility of BDT 2,010 million for setting up and operating a wireless broadband network to provide nationwide Broadband Wireless Access (BWA). BCL is one of three BWA Services License holders allowing it to introduce the Worldwide Interoperability for Microwave Access (WiMAX) telecommunications technology in Bangladesh. The project was to provide high speed (4G, broadband) wireless data connectivity, data solutions and value added services (VAS) to both corporate and individual users.
Pay-off existing debt and Cellular Network Expansion
Project: Pay-off existing debt and Cellular Network Expansion
Borrower: Grameenphone Ltd. (GP)
Location: Dhaka
Sponsor: Grameen Telecom (Bangladesh) and Telenor Mobile Communications AS (Norway)
COD: 2007-08
IDCOL Loan: Subscription of Unsecured Senior Bond of BDT 500 m
Project Description: IDCOL has subscribed BDT 500 million among total issuance of BDT 4,250 million. GP used the fund for paying off short term debt and strengthening its already expanded network. GP is the leading telecom service provider in the country with 17.81 million subscriber base and 45.7% market share (FY2007-08). The lead arranger of the facility was Citi Bank N.A. and the major subscribers of the bond were A.K. Khan Group, Prime Bank Ltd., UCBL, Brac Bank Ltd. and City Bank Ltd.
Cellular Network Expansion
Project: Cellular Network Expansion
Borrower: Grameenphone Ltd. (GP
Location: Grameenphone Ltd. (GP
Sponsor: Grameen Telecom (Bangladesh) and Telenor Mobile Communications AS (Norway)
COD: 2006-07
IDCOL Loan: BDT 125 million
Project Description: The project cost and debt requirement were USD 587.17 million and USD 320 million, respectively. In FY2005GP had 60% market share and 66.5% land coverage. After the expansion project, GP expected to cover 77% of total land area and 91% of the population of the country by the end of 2006 against 50% land coverage and 54% population coverage by the end of 2004. In terms of capacity, GPs MSC capacity was expectedto be increased from 3.53 million in 2004 to 10.2 million in 2006. The expansion was investment in radio network, switching network, backbone and other civil works.
2G License Renewal of Grameenphone Ltd.
Project: 2G License Renewal of Grameenphone Ltd.
Borrower: Grameenphone Ltd.
Location: Dhaka
Sponsor: Grameen Telecom (Bangladesh) and Telenor Mobile Communications AS (Norway)
COD: 2011-12
IDCOL Loan: BDT 1,500 million
Project Description: IDCOL financed the project out of total syndicated term loan of BDT 7,350 million (expandable up to BDT 11,025 million) arranged by Standard Chartered Bank Limited. GP was operating under the radio system operating license since 1997 awarded by BTRC (MoPT previously). The license became scheduled to expire on 11 November 2011 and was subject to renewal upon fulfillment of certain terms and conditions including payment of license renewal fee, which was BDT 35,040 million. The proposed syndicated term loan Facility would be utilized to partially finance the 2G License Renewal Fee, rest were sourced from internal equity & bilateral loan.
Working capital facility
Project: Working capital facility
Borrower: Orascom Telecom Bangladesh Limited, currently Banglalink Digital Communications Ltd.
Location: Dhaka
Sponsor: Orascom Telecom Holding S.A.E.
COD: FY2012-2013
IDCOL Loan: BDT 400 million
Project Description: IDCOL participated in the BDT 4,845 million syndicated working capital facility raised for Orascom Telecom Bangladesh Limited (OTBL).OTBL requiredthe working capital of BDT 5,368 million for paying SIM tax, VAT, and meeting other operating expenses during 2013. The proposed syndicated working capital facility had been utilized to partially finance the working capital requirement in 2013.OTBL started its operation in Bangladesh in 2004 by taking over 100% shares of Sheba Telecom Limited. OTBL is the second largest mobile telecommunications operator in Bangladesh,with about 27.18% market share and 25.49 million subscribers (FY2012-2013).
Sponsor: Mr. Nazim A. Haque, Mr. Tarique E. Haque. Mr. Nazim, Mr. Tarique
COD: 24 August 2008
IDCOL Loan: USD 3 million
Project Description: BTCL is one of the first four International Gateway (IGW) service providers in Bangladesh. BTCL was awarded an IGW license on 25 February 2008 following competitive bidding process to build, own and operate an IGW network for a term of 15 years. BTCL entered into a contract with Ericsson for supply of Ericsson AXE 810 telephony server (TeS) as the main switching platform (call control function), Ericsson AXD 301 based interconnection platform and Ericsson AXD 301 based media gateway (MGW). For network security, they use Juniper ISG 2000 firewall and Redback SE400 routers. Currently BTCL has capacity to handle around 42,265 concurrent calls.
Sponsor: Mr. Moynul Haque Siddiqui, Mr.Md. Habib Ullah Babul, Mr. NasimulAlam Chowdhury, Mr. Wahidul Haque Siddiqui and Jenny Shoes Ltd.(represented by Mr. Nasir Khan)
COD: 1 July 2010
IDCOL Loan: BDT 260 million under a BDT 680 million syndicated
Project Description: Under a license awarded on 07 January 2009 by Bangladesh Telecommunication Regulatory Commission (BTRC) for a term of 15 years, F@H intended to setup a Nationwide Telecommunication Transmission Network (NTTN) using fiber optic cables all over Bangladesh. Under the license, F@H was obligated to connect 13 Zillas and 30 Upozillas of Bangladesh in the first year of operation and had to eventually cover the whole country within 10 years using fiber optic connectivity technology. Right now, F@H provides dedicated voice and data connectivity to the ANS operators, Internet Service Providers (ISPs) and other authorized users across the country.
Terrestrial Cable Landing Station
Project: Terrestrial Cable Landing Station
Borrower: Fiber@Home Limited (F@H)
Location: Benapole, Jessore
Sponsor: Mr. Moynul Haque Siddiqui, Mr. Md. Habib Ullah Babul, Mr. Nasimul Alam Chowdhury, Mr. Wahidul Haque Siddiqui and Jenny Shoes Ltd.(represented by Mr. Nasir Khan)
COD: 5 July 2012
IDCOL Loan: BDT 80 million as part of BDT 130 million syndicat
Project Description: The Project involved providing services to International Gateway (IGW) and International Internet Gateway (IIG) operators, Authorized International Private Leased Circuit (IPLC) users etc. under International Terrestrial Cable (ITC) license issued by Bangladesh Telecommunication Regulatory Commission to F@H on 5 January 2012 for a term of 15 years. Under the Project, F@H established terrestrial cable landing station at Benapole, Jessore from where backhaul service providers (IGW, IIG, IPLC) were connected. Bangladesh Telecommunication Regulatory Commission awarded the International Terrestrial Cable (ITC) license with the objective to create redundancies for the existing single submarine cable as well as to enhance the quality of the data connectivity services throughout Bangladesh.
Project Description: Under a license from Bangladesh Telecommunication Regulatory Commission (BTRC) for providing VSAT (Very Small Aperture terminal) services of point to point international and domestic data circuit (excluding voice communication), DNS established a VSAT hub station, also known as earth station or teleport on build, own and operate (BOO) basis to provide satellite based domestic and international data connectivity to any region of Bangladesh. The hub station is a critical link between the internet users in the locality to this backbone. Whenever any data is transmitted, the hub station determines its most efficient travel route and its required bandwidth. When any VSAT uploads data, it directly goes to the satellite and from there it is downloaded in a hub station. Then hub station routes the data towards the location for which it is intended.
Project Description: The proposed project was an expansion of network to enhance subscriber capacity from 120,000 to 360,000 under PSTN license from Bangladesh Telecommunication Regulatory Commission (BTRC) to provide NWD & ISD call services to the subscribers of the approved zones. The major supplier of equipment was Huawei, China and Ericsson. IDCOL along with 9 other banks and financial institution participated in the syndicated debt facility of BDT 1.01 billion, arranged by IIDFC Ltd. IDCOL sanctioned BDT 50 million and disbursed BDT 28.06 million to the project.
