Mobile operator Celltel Lanka signed up for a US$ 21 mn syndicated loan to deploy its network islandwide by August.
Under the fifth phase, Celltels GSM network will add 85 new coverage sites and increase present coverage by 250 percent.
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rnldblquote We will have coast to coast coverage, with capacity to add a new switching system to connect 200,000 new subscribers, dblquote its Chief Executive, Dumindra Ratnayaka told a news conference on Friday.rn
rnThe four-year loan is co-financed by Hatton National Bank (who acts as the lead arranger) and National Savings Bank.rn
rnUnder the new funding arrangement, Celltels existing US$ 21 mn debts will be re-packaged and serviced at a lower rate, while the cellular operator itself will chip in with internally generated cashflows. rn
rnThe loan carries a two-year grace period and the financiers are presently working out a guarantee from a multilateral lending agency, before finalising the pricing of the issue. rn
rnIn addition to the loan, Celltels par