MTN Nigeria Communication Plc, whose stock was recently listed on the Nigerian Stock Exchange (NSE) and has reminded the top gainer for the second day running gaining 10 percent on Friday 17th of May 2019 has announced that it has secured a N200 billion syndicated loan from consortium of 7 Nigerian banks.
The facility provided by a syndicate of Nigerian banks made up of:
- Access bank
- GT Bank
- Zenith Bank
- Fidelity Bank
- First Bank
In a letter to the NSE, the telecommunications giant announced that it has secured a 7-year N200 billion medium term Facility with a consortium of seven (7) mostly local banks with Citibank acting as the coordinator and Quantum Zenith acting as Facility Agent.
The facility which is the eight (8) of the series of facilities the company has secured in its 18 years of operations in Nigeria is denominated in Naira, with a 2 years moratorium and a 7 year repayment term.
According to the company, the facility will enable MTN Nigeria fund its emerging opportunities while assisting with working expenditure and working capital to deliver enhanced customer services.
The Chief Executive Officer of MTN Nigeria, Ferdi Moolman said the syndicate loan signpost MTN commitment to and confidence in Nigeria and the strength of strategic collaboration with financial institutions is Nigeria that will help broaden the provision of ICT services in Nigeria.
“The facility expands our existing domestic debt program which we are using to fund increased network capacity and, expansion of both Voice and Data service on our network to customers in new areas and, with next generation service. We have enjoyed remarkable funding support from Nigeria’s financial institutions since our first facility in 2003 and this has been critical to the developmental one of the largest telecoms company 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 complement it with an important addition to our portfolio of debt”.