Idea Cellular borrows USD100 million from IFC

25 Sep 2008

International Finance Corporation (IFC), a World Bank member, has approved a USD100 million loan to Idea Cellular, according to Indian news source Business Standard. The funds are expected to be used to allow the cellco to expand and improve its network infrastructure, enabling Idea to offer services in the Bihar region; telecom penetration in the region is estimated at less than 8%, although is expected to rise to 20% by 2012. IFC and Idea will coordinate on a project to establish Pocket Public Calling Offices, delivering mobile and other value-added services to under-served rural areas; Idea MD Sanjeev Aga claimed, ‘IFC’s investment will provide the much-needed long-term funding that many companies in India find difficult to access while helping expand the local telecommunications infrastructure.’

Idea holds licences for all 22 calling circles in India and is planning launches in Bihar, Jharkhan, Orissa and Tamil Nadu before the end of its fiscal year in March 2009.

India, Vi (Vodafone Idea Limited, VIL)