MTN Nigeria Communications Plc has said that it has signed N200 billion medium-term loan facilities with a consortium of seven banks operating in Nigeria.
A statement on the Nigerian Stock exchange (NSE), signed by the Company Secretary, Uto Ukpanah stated that the medium-term facility would enable the company to fund its evolving business opportunities while assisting with capital expenditure and working capital, to deliver enhanced customer service.
The loan syndication came a day after the listing of MTN Nigeria shares on the NSE.
The banks involved were Access Bank Plc, Guaranty Trust Bank Plc, Zenith Bank Plc, Fidelity Bank Plc, First City Monument Bank Plc, United Bank for Africa Plc and First Bank of Nigeria Limited.
Also, the facility was coordinated by Citibank, while Quantum Zenith acted as facility agent.
The loan facility follows the establishment of a similar N200billion loan facility signed by MTN last year as part of its wider programme to raise domestic debt.
Speaking at the signing, Chief Executive Officer, MTN Nigeria, Ferdi Moolman expressed enthusiasm at the completion of the agreement, saying it signposts the firm’s commitment to and confidence in Nigeria, and the strength of the strategic collaboration between MTN Nigeria and local financial institutions, that will help deepen and broaden the provision of ICT services in Nigeria.
According to Moolman, “This facility expands our existing successful domestic debt programme, which we are using to fund increased network capacity, and the expansion of both the voice and data services on our network to customers in new areas and with new next-generation services.
“We have enjoyed remarkable funding support from Nigeria’s financial institutions since our first facility in 2003 and this has been critical to the development of one of the largest telecoms network in Africa, with over 60 million subscribers.
“I am delighted that, so soon after our successful listing on the Nigerian Stock Exchange, we are able to complement it with such an important addition to our portfolio of debt.”
Furthermore, Moolman lauded the participating financial institutions for staying committed to them, stressing that the loan syndication showcases the strength of the Nigerian financial institutions and their confidence in MTN’s vision, as well as both parties joint ability to stimulate significant economic growth.
The facility is structured with a 2-year moratorium and a repayment plan of seven years and is denominated in Naira. This is the eighth syndicated loan agreement by MTN in Nigeria since its inception 18 years ago.