Chinenye Anuforo
The Board and Management of Emerging Markets Telecommunication Services Limitedl (EMTS), trading as 9mobile, have disclosed that ongoing efforts to reposition the company have started yielding results as the Africa Finance Corporation (AFC), has approved a $230 million (two hundred and thirty million US Dollars) loan facility to help it attain its long-term growth plans.
The AFC is a pan-African multilateral development financial institution established to bridge Africa’s infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.
Convinced by the initiatives so far taken by the Alhaji Nasiru Ado Bayero-led Board and management headed by Acting Managing Director, Stephane Beuvelet, to return the company to the path of growth and profitability through cost efficiency, innovative product development and network efficiency, the AFC announced the approval of the loan on August 23, 2019.
In a letter addressed to both Bayero and Beuvelet, the financial institution said, “Africa Finance Corporation is pleased to inform Emerging Markets Telecommunication Services that it has received full Board approval to support the turnaround strategy of EMTS through a US$230 million super senior debt investment.”
The facility divided into two tranches would among others, be used to repay historic vendor obligations, finance costs and an interest reserve account and payment towards quick win capex initiatives.
Commenting on the approval, the Board Chair, Alhaji Ado Bayero, expressed happiness that EMTS’ effort to recover previously ceded ground through an innovative growth plan is being supported by a prestigious Pan-African financial institution as the AFC.
“We can only express gratitude to the AFC for approving this loan facility that would not only help our business sustainability but also grow it to serve our teeming and loyal customers in Nigeria better. We have completely reviewed our operational, regulatory, financial and technical architecture to ensure we deliver quality services and this facility would go a long way in giving best in class services to Nigerians,” he said.
He further assured of the company’s resolve to continue its aggressive enhancement of network capacity and innovative features to guarantee optimum value to customers. He added that “our turnaround efforts are well and truly underway. We had promised when we took over that we would justify the confidence in our brand by making significant investments that will improve the value Nigerians get for using 9mobile. This is part of fulfilling our promise.”
Also commenting on the transaction, 9mobile’s Chief Financial Officer, Phillips Oki said, “the success of this transaction by way of the approval of the Board of Africa Finance Corporation is a sound affirmation of our belief that the fundamentals of the 9mobile business are indeed strong.