South Africa owned mobile communication giant, MTN Nigeria signed a seven-year medium term loan agreement of N200 billion with a consortium of 12 local lenders on Wednesday.
The deal which was sealed at a brief ceremony at the law office of Alike & Purpose in Ikoyi, Lagos, will allow the carrier, the largest in the country, to fund its capital expenditure on network expansion, along with evolving business opportunities.
MTN Nigeria Chairman Pascal Dozie said the telco has operated in the country for about two decades, adding that the experience has been great with various innovations from the company.
Represented by Gbenga Oyebode, the MTN chair said the telco wouldn’t have been what it is today were it not for the support of the banks.
MTN Chief Executive Officer Ferdi Moolman was delighted by the deal, saying it signposts the company’s commitment to and confidence in the economy. Moolman said the strategic collaboration between MTN Nigeria and local lenders would deepen and broaden the provision of ICT infrastructure services across the country.
He said: “The signing of this loan facility is a major landmark in our expansion programme in which we are making significant investments. The facility will enable us evolve the network to deliver convergent and superior quality, drive voice capacity expansion and data service penetration, maintain optimal capital structure and funding level that support growth and expansion.
“Making it possible for people to connect to each other and world, find and share information and ideas, create and access new digital services and reimagine old services. This partnership puts in place infrastructure that empowers commerce, industry and provision of public services.”
He lauded the participating financial institutions for their commitment to the telco, adding that the loan syndication showcased the strength of the Nigerian financial institutions and their confidence in MTN’s vision, as well as both parties’ ability to stimulate significant economic growth.
The facility is structured with a two-year moratorium and a repayment plan of five years and is denominated in the naira.
Citibank Nigeria, Diamond Bank, Ecobank, Fidelity Bank Plc, First Bank, FCMB, FSDH Merchant Bank, Rand Merchant Bank, Standard Chartered Bank, Stanbic IBTC, UBA and Union Bank are providing the cash for MTN.
The step will assist MTN to provide optimum services and product for its over 55 million and ever growing subscriber base in the country.