Zain-Iraq

completed

Zain Iraq is the largest GSM cellular telephone operator in Iraq. The Company is 72% owned, directly and indirectly, by the Zain Group, a leading Middle Eastern and African telecommunications operator and long standing IFC client, based in Kuwait. As of September 2009, IFC had investments in Zain operating companies in the Democratic Republic of Congo, Ghana, Madagascar, Malawi, Sierra Leone, Uganda and Zambia. Zain Iraq launched its operations in December 2003, having been awarded a license to provide mobile telecommunications services in Iraq’s southern region. In August 2007, the Iraqi national government auctioned three 15-year, nationwide mobile licenses, which were intended to replace the short term, regional licenses that had previously been provided to operators. Iraqna, owned by Egyptian-operator, Orascom, and at the time the market leader, dropped out of the auction and later sold its network to Zain Iraq. The acquisition transformed Zain Iraq into the leading mobile operator in Iraq. Zain Iraq is seeking finance from IFC to support its 2010-2011 investment program, which includes capital expenditures to improve the company’s network coverage, capacity and quality in underserved areas.