MTN, Zain, Visafone Raise $2.35Bn from Banks

MTN Nigeria, Zain Nigeria, and Visafone, three leading telecommunications operators in Nigeria have raised some $2.35 billion in past 16 months from local banks to push their services to pole vault position.

Nigeria CommunicationsWeek investigations revealed that the development attests to the willingness of financial institutions to extend facilities to telcos with sound accounting processes.

Apart from Visafone, no other Code Division Multiple Access (CDMA) operator has benefited big time from the banks which are cautious in lending big time.

Some banks are also skeptical about small operators without clear business model which in most cases are centered on an individual.

But MTN Nigeria enjoying its leadership position and clearly defined accounting procedures has received a $2 billion loan from Stanbic IBTC Bank between 2007 and this year while Zain Nigeria, fresh from a successful rebranding has sourced a $105 million.

Visafone secured $200 million loan syndication from13 Nigerian banks namely: First Bank, GT Bank, Oceanic Bank, Zenith Bank, Intercontinental Bank, Bank PHB, Fidelity, Fin Bank, Afribank, Sterling Bank, Access Bank, FCMB and EIB.

These loans according to sources would provide leverage for the telcos towards network expansion, network maintenance as well as building adequate capacity to improve the quality of service.