As part of measures to ensure Nigerian telecommunication industry receive needed funding to enable it compete with global world, MTN Nigeria has signed a N200 billion business funding agreement with seven banks, a medium term facility which its repayment was expected to be completed under seven years.
It listed member-banks of the facility consortium to include Zenith Bank, United Bank for Africa, Fidelity Bank, First City Monument Bank, First Bank, Access Bank, Guaranty Trust Bank,
The Chief Executive Officer, MTN, Ferdi Moolman, disclosed that the network provider had entered agreement of N200 billion of medium facility term with consortium of seven local banks, with Citibank acting as co-ordinator and Quantum Zenith, as facility agent.
Speaking after the signing of the agreement at a law firm Lagos on Friday, Moolman indicated that facility would enable MTN to fund its evolving business opportunities while assisting with capital expenditure and working capital, to deliver enhanced customer service.
The MTN’s boss explained that the new facility followed the successful establishment of a similar seven-year N200 billion facility by the company in 2018, and formed part of the company’s wider programme to raise domestic debt.
According to him, the development will help to deepen and broaden the provision of ICT services in Nigeria.
“I am happy at the completion of the agreement; it signposts MTN’s commitment to, and confidence in Nigeria, and the strength of the strategic collaboration between MTN 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 Voice and Data services on our network to customers in new areas.
“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 60 million 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,” he said.
On the development, Moolman, who commended the consortium banks for supporting MTN, maintained that the loan syndication showcased strength of Nigerian financial institutions and their confidence in MTN’s vision “and both parties’ ability to stimulate significant economic growth’.
He said that the facility was structured with a two-year moratorium and a repayment plan of seven years, and was denominated in Naira and that the signed facility was the eighth syndicated loan agreement by MTN in Nigeria since its inception 18 years ago.