Celtel Tanzania to receive USD90 million loan for network expansion

20 Jun 2006

Celtel Tanzania, part of the pan-African Celtel Group, has received a USD90 million loan to carry out network expansion work. In an interview with the EastAfrican newspaper last week, the Tanzanian unit’s managing director Steve Torode said the loan, which has been arranged through the African Standard Bank, was a medium term facility that would be amortised over four and a half years. Eight other financial institutions are also involved in the funding: NBC Bank, Exim Bank, Tanzania Investment Bank, CRDB Bank and Standard Chartered Bank Tanzania, Stanbic Bank Tanzania, Development Bank of Southern Africa and FMO – the Dutch development financial institution. The funding will be used to install 400 new base stations to boost the cellco’s network coverage. Celtel Tanzania broke away from the Tanzania Telecommunications Company Limited (TTCL) in 2005 and has since been looking for funding. It is understood that the company will access an additional USD15 million early in 2006 through a rollover facility to be provided by the same lenders.

Tanzania, Airtel Tanzania