ZAMBIAN OPERATOR RAISES LARGEST EVER LOCAL CURRENCY DEBT

Mergers, Acquisitions and Financial Results

Celtel Zambia says that it has raised US$105 million from a syndicate of banks, to assist in repaying existing loans and fund further network expansion. This landmark transaction is the largest locally raised Kwacha and foreign currency syndicated term loan facility with offshore participation for a Zambian corporate borrower.

"The loan facility is an indication of the confidence that banks have in our company. It also reflects the confidence that both Celtel and the financial sector have in the Zambian economy," said Celtel Zambia Managing Director, David Venn.

"In the past, we have heavily relied on our shareholders to fund growth and rollout, but we are now firmly established and as such, we are now able to raise significant financing from the market on our own," he added.

Established in April 1997, Celtel Zambia is the leading operator in the Zambian GSM mobile market, with an 80% market share and serving over 1.2 million subscribers. Celtel International holds 88.88% of Celtel Zambia. The residual 11.12% is held by the International Finance Corporation ("IFC").

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