MTN Nigeria Communications Plc has signed a N200bn medium-term loan facility with a consortium of seven banks, Punch online report.
The Chief Executive Officer, MTN Nigeria, Mr Ferdi Moolman, while speaking at the signing ceremony, stated that the loan facility would enable MTN to fund its evolving business opportunities while assisting with capital expenditure and working capital to deliver enhanced customer service.
The banks involved are Access Bank Plc, Guaranty Trust Bank Plc, Zenith Bank Plc, Fidelity Bank Plc, First City Monument Bank Plc, United Bank for Africa Plc and First Bank of Nigeria Limited.
This loan facility follows the establishment of a similar N200bn loan facility signed by MTN last year as a part of its wider programme to raise domestic debt.
Moolman said, “This 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 Information and Communications Technology 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.”
He added that the company had enjoyed remarkable funding and support from financial institutions in Nigeria since its first facility in 2003.
Moolman said he was excited that the loan facility was coming after the company had listed on the Nigerian Stock Exchange.
According to him, the loan facility is structured with a two-year moratorium and a repayment plan of seven years, denominated in Naira.
He disclosed that the loan facility was the eight syndicated facility signed by MTN since its inception 18 years ago.