MTN Nigeria, Consortium Pen N200bn Facility for Landmark Expansion
MTN Nigeria, the leading Information and Communications Technology (ICT) Company, today announced the signing of N200bn Facility (Medium Term) with a consortium of twelve (12) local banks, with FBN Quest acting as Facility Agent.
The N200bn facility agreement was formally signed at a ceremony at the law offices of Aluko & Oyebode in Ikoyi, Lagos, in the presence of key partners, stakeholders and the media.
The deal will enable the telecom company to fund its Capital Expenditure, Working Capital along with evolving business opportunities by expanding its services to other part of the country, especially the underserved and unserved areas of the country.
The banks which signed the loan are Citibank Nigeria Limited, Diamond Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria PLC, First City Monument Bank, FSDH Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, Standard Chartered Bank Plc, Stanbic IBTC Bank Plc, United Bank of Africa Plc and Union Bank of Nigeria Plc.
While speaking on the agreement, Mr. Akin Oyebode, who represented the chairman of MTN Nigeria, Mr. Paschal Dozie, said “MTN has been in the market for the past 17 years. It’s been significant. Innovation, geographical spread and network expansion. MTN won’t be where it is today without the support of our lender banks and with this loan, the company will continue to grow its market”
Chief Executive Officer, MTN Nigeria, Ferdi Moolman, expressed enthusiasm at the completion of the N200bn facility 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:
“The signing of this N20bn 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.
“Making it possible for people to connect to each other and the world, find and share information and ideas, create and access new digital services and reimagine old services. This partnership puts in place infrastructure that empowers commerce, industry and the provision of public services.” Moolman said.
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 the joint ability of the parties to stimulate significant economic growth.
He added that the secret of growing strength of MTN is investing in infrastructural equipment and believed that with the new partnership, the future is brighter.
The N20bn facility is structured with a two-year moratorium and a repayment plan of five years and is denominated in Naira.
Controlling 41% market share and over 60m subscribers in the telecom sector, MTN will expand its services to the rural areas while also working towards building effective facilities to enable smooth customer experience especially as the service is going more data-centric than voice-centric.