IFC Loan to Expand Reach of Mobile Telephones in Turkey

IFC, the private sector arm of the World Bank Group, has signed a US$420 million loan agreement with Avea, one of Turkey's major mobile phone operators, to help the company refinance and expand its GSM network to reach thousands of additional subscribers throughout Turkey. The agreement is part of a US$1.6 billion long-term financing package arranged by IFC and ABN Amro Bank.

"Today's agreement marks an important milestone for Avea," said Cüneyt Türktan, Avea's CEO, "Our company will continue to invest in new technologies, and we look forward to a long-term relationship with IFC that is mutually beneficial."

In addition to expanding the reach of coverage to include a larger proportion of Turkey's population, the project is expected to stimulate competition in the sector and generate significant employment and support to local small and medium enterprises that are clients of Avea.

IFC's Director for Global Information and Communication Technologies, Mohsen Khalil, praised the company for its track record as an innovative operator in the telecommunications and technology sectors. He said, "IFC has a long-standing relationship with Avea and its shareholders, and we have been working with Avea as an advisor and arranger for the past five years. The agreement today demonstrates our continued confidence in the company as well as our overall support of the private sector's role in telecommunications."

IFC's Director for Southern Europe and Central Asia, Shahbaz Mavaddat, said, "IFC's investment in Avea will represent one of the largest investments for a major infrastructure project in Turkey. It is expected to have a significant demonstration effect by signaling confidence in recent economic reforms and promoting additional investments in other areas of the economy."

Over the past 10 years, IFC has invested over $2.3 billion in telecommunications, media, and technology projects worldwide."

Posted to the site on 20th April 2007