MTN Nigeria Inks N200bn loan facility with 12 banks for Network Expansion

MTN Nigeria on Wednesday signed a seven-year N200 billion medium term facility with a consortium of twelve (12) local banks, with FBN Quest acting as facility agent.

Ferdi Moolman, Chief Executive Officer, MTN Nigeria, at the formal agreement signing ceremony held in Lagos, said that the medium term facility is expected to enable MTN to fund its capital expenditure, working capital along with evolving business opportunities.

Moolman expressed enthusiasm at the completion of the 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:

According to him, “The signing of this loan 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.”

He 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.

The facility is structured with a two-year moratorium and a repayment plan of five years and is denominated in Naira.

It is provided by a syndicate of banks made up of Citibank Nigeria Limited, Diamond Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria Plc, First City Monument Bank (FCMB) Limited, FSDH Merchant Bank Limited,

Others are Rand Merchant Bank (RMB) Nigeria Limited, Standard Chartered Bank Plc, Stanbic IBTC Bank Plc, United Bank for Africa (UBA) Plc and Union Bank Of Nigeria Plc.

The said that this bold step will assist them to continue to provide optimum services and products for over 55 million and ever-growing customer base.

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.”

He added that even with the pressures banks face in terms of credit, the company still enjoys the support of the banks, noting that it’s commendable.

Remi Oni, Executive Director, Corporate Banking, First Bank Nigeria Plc, speaking at the ceremony said that they are proud of the completion of what seems as a tortuous journey for them adding that they are committed to supporting MTN’s businesses.

Emeka Okonkwo, Executive Director, Corporate & Investment Banking, Union Bank, said that partnering with MTN is more than just rendering financial services.

He added that they are privileged and humbled to be part of the medium term facility process.