MTN Group During the Signing Ceremony

Telecommunications giant, MTN Nigeria Communications Plc has on Friday raised an N200billion  loan from local Banks in Nigeria.

The loan which has also been signed is a seven-year medium-term facility with a consortium of seven mostly local banks.

This was also corroborated by its Company Secretary, Uto Ukpanah, to the Nigerian Stock
Exchange (NSE) in line with its post listing requirements. The statement also disclosed that the seven banks include: Access Bank, GT Bank, Zenith International Bank, Fidelity Bank, First City Monument Bank, United Bank for Africa and First Bank of Nigeria Limited.

It also said in the statement that the facility was coordinated by Citibank, while Quantum Zenith acted as facility agent.  It noted 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.

However, speaking on the facility, the company’s Chief Executive Officer, Mr. Ferdi Moolman, said the facility indicated MTN’S confidence in Nigeria and local financial institutions.

“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.

“We have enjoyed remarkable funding support for Nigeria’s financial
institutions since our first facility in 2003 and this has been
critical to the development of the largest telecommunications network
in Africa”.
He also said the syndicated loan showcased 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 loan syndication came a day after the listing of MTN Nigeria Communications shares on the Nigerian Stock Exchange (NSE). The stock at the first trading day rose by N9 to close at N99 per share.  The shares are currently trading at N108.90 per share.

NAN also reports that MTN Nigeria on May 16 listed a total of 20.35 billion shares at N90 per share.