“The signing of this loan facility is a major landmark in our expansion programme in which we are making significant investments…”
Chinenye Anuforo
MTN Nigeria yesterday, signed a seven-year N200 billion medium term loan facility with a consortium of 12 banks.
The loan agreement, which was formally signed in Lagos, will enable MTN to fund its capital expenditure and working capital along with evolving business opportunities.
READ ALSO: MTN to list on NSE by May 2019 – Danbatta
Speaking at the signing, the Chairman of MTN, Pascal Dozie, said the company has been in the country for 17 years and the experience has been great with different innovations from the company.
Dozie, who was represented by Gbenga Oyebode, stated that MTN would not have been what it is today without the support of the banks, adding that despite pressures the banks face in terms of credit, the company still enjoys their support and “this is commendable”, he said.
For his part, 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 it and local financial institutions that will help deepen and broaden the provision of ICT services in Nigeria.
“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.
“This would make it possible for people to connect to each other across the world, find and share information and ideas, create and access new digital services and reinvent old services. This partnership puts in place infrastructure that empowers commerce, industry and provision of public services,” Moolman said.
He lauded the participating financial institutions for staying committed to MTN, stressing that the loan syndication showcases the strength of the Nigerian financial institutions and their confidence in MTN’s visions, 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 naira. It is provided by a syndicate of banks including Citibank Nigeria, Diamond Bank, Ecobank, Fidelity Bank Plc and First Bank.
Others are FCMB, FSDH Merchant Bank, Rand Merchant Bank, Standard Chartered Bank, Stanbic IBTC, UBA Plc and Union Bank.