- MTN Nigeria Communications Plc signs a new 7-year N200 billion Medium Term Facility with a consortium of seven local banks
- The loan facility, MTN Nigeria says it will be used to fund its evolving business opportunities while assisting with capital expenditure and working capital, to deliver enhanced customer service.
- This is the eighth syndicated loan agreement by MTN in Nigeria since its inception 18 years ago.
- The new syndicated loan is coming 8 months after the company signed N200 billion loan with 12 Nigerian banks in 2018.
MTN Nigeria Communications Plc has signed a new 7-year N200 billion Medium Term Facility with a consortium of seven local banks, with Citibank acting as coordinator and Quantum Zenith as facility agent in the deal.
This is coming about 8 months after the company signed N200 billion loan with 12 Nigerian banks to expand its data network and improving its fibre infrastructure.
The loan agreement was formally signed at a ceremony at the law offices of Aluko & Oyebode in Ikoyi, Lagos, in the presence of key partners and other stakeholders on Friday, May 17, 2019.
According to MTN Nigeria, a loan which is medium-term facility will enable the telecom giant to fund its evolving business opportunities while assisting with capital expenditure and working capital, to deliver enhanced customer service. It follows the successful establishment of a similar seven-year, N200 billion facility by MTN in 2018 and forms part of the company’s wider programme to raise domestic debt.
Ferdi Moolman, MTN Nigerian CEO, while speaking at the signing, expressed enthusiasm at the completion of the agreement, saying it signposts MTN’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:
“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 60m subscribers. I am delighted that, so soon after our successful listing on the Nigerian Stock Exchange, we are able to compliment it with such an important addition to our portfolio of debt.”
Moolman 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 vision, as well as both parties joint ability to stimulate significant economic growth.
Terms of the N200 billion loan
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.
The facility is provided by a syndicate of banks made up of:
- 1. Access Bank
- 2. Guaranty Trust Bank
- 3. Zenith Bank
- 4. Fidelity Bank
- 5. First City Monument Bank
- 6. United Bank for Africa
- 7. First Bank.
Last week, NSE admitted MTN Nigeria Communications Plc to list shares on the stock market and joined the country's Premium Board, listing by introduction of 20.35 billion (20,354,513,050) ordinary shares at N90 per share.
The telecom company joined the likes of Dangote Cement Plc, FBN Holdings Plc, Zenith International Bank Plc, Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc on the most stringent corporate governance and listing standards of the NSE – Premium Board.
The company is now the second biggest company on the Nigerian Stock Exchange after Dangote Cement.