PTCL to Invest Rs. 375 Million into Ufone | InfoZonePK

PTCL has a plan to infuse Rs. 375 million into its subsidiary ‘Ufone’ as part of operational expansion plans by next year.

The unsecured loan is the part of Rs. 11 billion overall cash injection by the parents company under subsidiary debt agreement . Accordingly, the loans are recoverable in eight equal quarterly instalments commencing after a grace period of 3 to 4 years maturing latest by February 2016 and carryng mark-up at the rate of three months (KIBOR) plus 82 to 180 basis points (June 30, 2011: KIBOR plus 82 to 180 basis points).

The company earlier lent Rs. 10.62 million to Ufone for expanding its countrywide operations in different areas including network infrastructure, technical advancement and marketing.

An  official of Ufone said that the company is working out extraordinary expansion and service improvements plan, which includes development of 3G infrastructure and acquisition of Rozgar Microfinance Bank.

Besides, there are technology advancement program of the network for providing various new services to customers, he added:

“Ufone expansion plans nee a financial assistance on long-term basis in order to scale up its service in the future, hence it has been aided its parents company which has strong liquidity position,” an official said on the condition of anonymity.

Ufone has posted 7% growth in third quarter of current financial year 2011-12 that constituted  its earning of nearly Rs. 16 billion with profit of Rs. 1.5 billion. Overall, PTCL Group earned revenues of Rs. 83 billion which were 8 percent higher compared to same period last year. Its net profit after tax remained at Rs. 7 billion during the period under review depiciting a decrease of 11 percent over corresponding period last year.