International Finance Corporation (IFC), a member of the Washington-based World Bank Group, is providing a $269m loan to help reconstruct Kuwait-based Zain’s telecoms infrastructure in Iraq.

The seven-year debt package includes $100m from IFC’s own account and a further $169m “in mobilisation”.

According to IFC, the “mobilised amount” includes a B Loan from Jordan-based Arab Bank, a loan through the IFC-managed Co-lending Portfolio Programme, and a parallel loan from Germany-based DEG and Finland-based Finnfund.

MEED understands the financing package will target the expansion of Zain’s third generation (3G) network coverage to Iraq’s unserved areas, as well as expand capacity and enhance customer service in northern Iraq.

Mouayed Makhlouf, IFC regional director for the Middle East and North Africa, said enhancing broadband infrastructure can have a substantial multiplier effect on Iraq’s economy “through increased connectivity and reduced transaction costs, enhanced flows of information, and more efficient and effective matching of market players".

Iraq has one of the least-developed telecoms markets in the Middle East region due to the fragile security situation, which has severely limited mobile network operators’ ability to maintain and expand their networks.

It is not the first time IFC has arranged a loan for Zain Iraq. In 2011, it organised a $400m syndicated loan that included mobilisation of $195m from DEG, France-based Proparco, the Netherlands’ FMO and the Infrastructure Credit Facility.