Standard Chartered Bank and the Swedish Export Credit Corporation (SEK), have funded Millicom’s acquisition of an 85% majority stake in Tanzania’s Zantel, a local mobile telecom operator on the island of Zanzibar.

The facility, valued at $100m, is one of Standard Chartered’s largest term facilities within the East Africa’s telecommunications sector.

Sanjay Rughani, incoming CEO for Standard Chartered in Tanzania, said: “Standard Chartered Tanzania is pleased to play our part in this landmark transaction to support the already vibrant and growing telecoms market in Tanzania develop and invest further in the country. This transaction demonstrates the ability of banks like Standard Chartered to support significant investment in Tanzania.”

Zantel has approximately 5% of Tanzania’s current mobile phone market, and posted gross revenues of $82m for 2014.

Zantel’s ownership rights to undersea fibre optic cable capacity, will support Millicom’s successful ‘Digital Lifestyle’ strategy which is centered around enhanced data access.

The Government of Zanzibar will retain its 15% shareholding in the Zanzibar-based telecom’s company.

Millicom is an international telecommunications company offering a range of mobile services, cable TV and broadband across 14 markets in Africa and Latin America.

Millicom launched the innovative mobile service provider, Tigo, in Tanzania in 1993 – one of the Group’s six footprint markets in Africa.

Tigo Tanzania now supports over 8 million customers, and was the first cellular network to bring GSM and 3G connectivity, as well as other market-leading initiatives such as: International mobile money transfer with instant currency conversions; Facebook-for-free; and ‘Tigo Kilimo’, which provides small-scale farmers with information about weather, market prices and agronomy.

Cynthia Gordon, CEO of Millicom Africa Division, said: “Thanks to our partnership with Standard Chartered and the Swedish Export Credit Corporation, Zantel will give Millicom another channel to extend market-leading mobile benefits to the people of Zanzibar. We look forward to working alongside the Government of Zanzibar to create a strong and revitalized Zantel with improved customer experience on voice, data and mobile financial services.”

Over the last five years, Standard Chartered has arranged over $10bn worth of loans and facilities to support the growth and development of Africa’s telecommunications sector.

Standard Chartered has played an integral role in milestone telecommunications transactions across the continent, including the Bank’s role as: advisor to Tata Communications on the sale of Neotel to Vodacom; mandated lead arranger in financing for Liquid Telecom, a fibre network in Africa; participant in the recent $356m financing of Smile, an African 4G/LTE network operator and Mandated lead arranger in a number of financings for IHS, Africa’s leading telecom towers infrastructure company.

Stephen Priestley, Regional Head of Corporate and Institutional Banking for Standard Chartered in Africa & the Middle East, said: “Millicom is another one of the Bank’s valued global clients, who are benefiting from our African expertise and network to support their expansion in Africa, promoting economic growth and enhanced mobile access to local users.”

“Telecommunications is a transformational growth sector in Africa, bringing connectivity and information to individuals and businesses, as well as extending the reach of financial services via mobile banking,” he said.