Pan Asia Majestic Eagle Limited (Pamel), a provider of telecommunications infrastructure in Myanmar, will get a loan of $85bn from a group of banks, in what will be the first ever non-recourse, cross-border financing in the country, the counsel of the deal has said.
The amount is for financing the roll-out of telecom tower site infrastructure in the south Asian country, said Milbank, Tweed, Hadley & McCloy, the New York-based law firm.
Pamel 's current focus is on the construction of more than 1,250 towers for Ooredoo Myanmar, a telecom service provider, which intends to provide nation-wide 3G mobile service, Milbank said.
The banks in the group are DBS, ING, OCBC, Standard Chartered and Sumitomo Mitsui Banking Corporation.
ING Bank in Singapore is acting as the facilitator and offshore security agent and CB Bank in Myanmar is acting as the onshore security agent, Milbank said.
The transaction is considered significant as Myanmar, formerly isolated from the global markets, re-establishes and modernises its banking and capital markets.
"It is also expected to spur similar infrastructure development across Myanmar's telecom sector, which is poised for rapid expansion," Milbank said.
The Yangon-based Pamel was established in 2013 as an independent provider of telecom infrastructure, with the sector growing rapidly in Myanmar.
In June last year, the Doha-based Ooredoo and Norway's Telenor were awarded telecommunication licences in the country, which is one of the world's least developed telecom markets.