Etisalat Signs $1.2Bn Financing with Nigerian Banks

Etisalat Nigeria has signed a US$1.2 billion medium term syndicated loan facility with consortium of Nigerian Banks.

The company plans to use the proceeds to refinance the existing commercial medium term debt of $650 million and continue its network rollout across Nigeria.

The company will also continue the release of innovative products and services to its over fifteen million subscribers.

The facility includes both Naira and US dollar tranches from a consortium of Nigerian banks, namely: Zenith Bank, Guaranty Trust Bank, First Bank, United Bank of Africa, Fidelity Bank, Access Bank, Ecobank, Keystone Bank, First City Monument Bank, FSDH Merchant Bank, Mainstreet Bank, Stanbic IBTC Bank and Union Bank.

Speaking about this key transaction, Hakeem Belo-Osagie, EMTS chairman, highlighted that the loan is yet another key step in the company’s development.

According to the chairman, “Etisalat Nigeria has grown from strength to strength reaching 15 million subscribers earlier this year. This loan is a testament to the robust strategy of the company and the faith of the banking community. It will serve to further boost the company and the telecommunications sector. It is important to also note the enabling environment created by the Federal and State governments of Nigeria as well as the National Communications Commission”.

In this process, Etisalat Nigeria has benefited from the experience and support of its pioneer shareholders; Etisalat Group, Mubadala and Myacynth.

Commenting on the transaction, Steven Evans, chief executive officer, Etisalat Nigeria, said: “We are delighted with the continued support and confidence shown by so many banking partners. They have shown great faith in the company since launch and we view that as a sign of their endorsement of Etisalat Nigeria’s strategy and execution capabilities. We aim to continue to focus on our network expansion, our investment in 3G, as well as ensuring we offer the uncompromising network quality and customer service our subscribers have come to expect from us.”

Andrew Kemp, chief finance officer, Etisalat Nigeria, added: “The company is further encouraged not only by the steadfast support of the eight (8) banks that have been a part of our original consortium but also by the addition of new partner banks. This truly represents a vote of confidence in our results thus far and our plans for expansion. We also wish to thank all the advisers in this transaction, namely Citi, FBN Capital, Aelex, Norton Rose and Banwo & Ighodalo.”