Zain Iraq completes the sale and leaseback of 4,968 towers
Baghdad (IraqiNews.com) – The 4,968 towers in Zain Group’s portfolio in Iraq will be sold and leased back to TASC Towers Iraq for $180 million over a fixed 15-year period, including with management rights to the physical infrastructure.
In order to address the rising demand for data connection and meet local market needs, the agreement calls for TASC Towers Iraq to build 198 additional tower sites nationwide over the course of the following year. In addition, TASC Towers will oversee the management of Zain Iraq’s support infrastructure, including its fuel tanks, shelters, and generators.
“Zain’s ‘4Sight’ strategy aims to create significant value for shareholders through the unlocking of capital and optimization of infrastructure assets which will flourish under the management of an independent team,” said Bader Al-Kharafi, Zain Vice-Chairman of Group CEO. “This transaction will enhance operational efficiencies and empower Zain Iraq with greater flexibility to invest in network upgrades and cutting-edge ICT technologies to meet the ever-increasing demand for reliable and high-speed connectivity.”
An multinational tower operator with its headquarters in Dubai, TASC Towers focuses on build-to-suit, sale-and-leaseback, and tower-related investments in the Middle East, North & East Africa, and South Asia markets.
As an independent tower operator, TASC Towers’ subsidiary in Iraq will work to maximize the co-location of mobile network sites with other telco operators in the region. Doing so will improve the utilization of the infrastructure for mobile sites, lower the need for power generators, and lower the carbon footprint of the industry as a whole.
“As we expand TASC Towers’ presence across the region, we look forward to playing a key role in the evolution of Iraq’s digital economy and the positive impact it has on socio-economic growth for the community,” said Iyad Mazhar, CEO of TASC Towers. “Our independent operating model enhances the operational and carbon efficiency of passive tower infrastructure, which will allow mobile operators to invest more in technology upgrades and connectivity speeds.”
Following other ground-breaking transactions including the transfer of 2,830 towers in Jordan, 1,620 towers in Kuwait, and 8,100 towers in Saudi Arabia, Zain has now completed its fourth tower transaction.
Tower sale and lease back agreements free up a telco’s resources, allowing Zain operations to concentrate entirely on the telco’s core business and customers, giving them a superior mobile and broadband experience.