Zain sells and leases back passive infrastructure from IHS

Zain Kuwait has completed the sale and leaseback of the passive physical infrastructure of its 1,620 mobile tower portfolio for US$130 million (KD 40 million) to IHS Holding Limited (IHS). The transaction is the first sale and leaseback of telecom towers in the Middle East region by a licensed mobile operator.  

The transaction valuation was aimed at helping Zain to maximise efficiency in its operating model, considering future lease terms and the expansion of 5G towers across Kuwait. Under the terms of the transaction, Zain is selling only its passive, physical infrastructure to a new purposely created entity and will retain its intelligent software, technology and intellectual property with respect to managing its network.  

The transaction has been formally approved by Kuwait’s Communication and Information Technology Regulatory Authority (CITRA), and officially concludes an agreement first raised in 2017.