Zain Iraq II

completed

  IFC proposed investment is a syndicated facility of up to US$300 million for Atheer Telecom Iraq Limited (the “company” or “Zain Iraq”), a leading mobile telecommunications operator in Iraq and an existing IFC client.  The company’s majority equity shareholder is Mobile Telecommunications Company K.S.C.P Kuwait (the “sponsor” or the “Group” or “Zain Group”), a leading Middle Eastern and African telecommunications operator based in Kuwait and a long standing IFC client.  The group works through operating companies (OPCO) in eight Middle Eastern and African countries including Iraq. The proposed investment will be mainly used to support the investment program of the company throughout 2019, including  the expansion of the 3G network and enhancement of capacity and quality of the 3G network, which is the only means to access to broadband for many of the Iraq population. The roll-out program will partially involve transformation of existing 2G sites to 3G by installing radio equipment on existing towers, development of new rooftop sites and greenfield tower sites, network and power modernization through software investments and license applications.  The company is also considering expanding its fiber-optic network installation. Following the award of an initial 2-year licence, Zain Iraq launched its operations in Iraq’s southern region in December 2003. Over the last 14 years and following the award of a 15-year licence in August 2007 for the provision of GSM service and the subsequent authorization and award of 3G spectrum in November 2014, Zain Iraq has grown into a nation-wide operator with more than 4,000 tower sites, covering the entire Iraq’s territory. Currently one of the largest non-oil companies in Iraq, Zain Iraq provides direct employment to more than 2,000 individuals in its headquarters in Baghdad, Erbil and Basra, and creates further employment opportunities through its contractors and franchisers. The company’s core network consists of 10 mobile switching centers, 37 base station controllers, 19 radio network controllers and six warehouses operated through 12 network operating centers (NOCs) in Iraq. Ericsson is the main contractor of the company for new site acquisition, installation and maintenance of tower sites and NOCs. All tower sites are operated through long-term lease and protection contracts between Zain Iraq and respective landlords/government agencies. Ericsson also manages sub-contractors as deemed necessary for the network operations, whereas the company directly manages 12 power maintenance and fuel provision contractors for the tower sites equipped with generators.