Celtel completes final stage of $270 million fund raising

Celtel International, a leading pan-African mobile communications group with over five million managed customers in 13 countries, has raised a $80 million long-term debt facility led by the International Finance Corporation (IFC). It consists of senior loans from the Development Bank of Southern Africa, Finnfund, Proparco and Swedfund as well as $40 million from the IFC.

The $80 million debt facility is the final stage of a $270 million medium- and long-term debt package raised with 13 commercial banks and five financial institutions to fund the company's expansion and acquisition activities and refinance existing loan facilities. The initial tranche of $190 million was raised at the end of last year from a facility led by ING Bank NV and Standard Bank London Limited which included Barclays Capital and Citibank International plc.

Marten Pieters, Celtel's Chief Executive Officer, said:

“We are pleased to continue our partnership with IFC. This loan provides us with the additional capability to grow our current business and to acquire additional value generating assets across Africa. We invested more than US $250 million in infrastructure in Africa in 2004, an increase of 140% compared to the previous year. This loan brings additional capacity to fuel our growth and help us realise our vision of being the most successful pan-African telecommunications company.”

Mr. Mohsen Khalil, Director of IFC's Global Information and Communication Technologies Department, said:

“This is an important investment with an existing client that contributes substantially to improving telecommunications services in Sub-Saharan Africa, where markets are still characterized by low penetration rates, promising great growth opportunities. Celtel has been one of the main driving forces behind the phenomenal development of telecommunications services in Africa over the past few years, taking full advantage of cellular technology.”

Celtel was also the recipient of the first annual IFC Client Leadership Award in October 2004, which recognises a highly successful corporate client that, in line with IFC's mission, has made a significant contribution to sustainable development.

On 4 March 2005, Celtel International reported strong growth for the year to 31 December 2004 with proportionate EBITDA increasing by 67% to US $252 million and Profit before taxes and minority interests up by 97% to US $186 million.

For more details, please contact: Martin de Koning, Celtel Corporate Communications Director, +31 23 554 2671 or +31 6558 22409, deKoning.M@celtel.com