TelOne looking to transfer legacy debt to government

5 Oct 2015

The government of Zimbabwe could assume USD322 million of debt from state-owned fixed line and broadband operator TelOne, in a move designed to improve the telco’s position with regard to securing additional financing. TelOne inherited loans totalling approximately USD330 million when it was spun off from the former Postal and Telecommunications Corporation (PTC) in 2000. The Zimbabwe Independent quotes a company statement which says the removal of the debt from the balance sheet would allow the company to access loans at reasonable rates. A bill for the assumption of the debt would need to be tabled in parliament. TelOne recently reported a 9% year-on-year fall in revenues for the six months to 30 June 2015 to USD69 million.

Zimbabwe, TelOne