MTN secures fresh 200b loan, targets capex expansion of 4G services, others

Barely 24 hours after it listed 20.4 billion ordinary shares at N90 on the Nigerian Stock Exchange (NSE), MTN has secured fresh loan of ₦200 billion from seven Nigerian financial institutions. This loan is coming barely a year after MTN was also granted ₦200 billion loan by the banks.
 
The new agreement was formally signed at a ceremony at the law offices of Aluko & Oyebode in Ikoyi, Lagos, yesterday.
   
Chief Executive Officers and some representatives of the issuing institutions including Zenith, GT, UBA, Access, FCMB, First and Fidelity banks were on ground to sign the deal. The facility is structured with a two-year moratorium and a repayment plan of seven years and is denominated in Naira. This is the eighth syndicated loan agreement by MTN in Nigeria since its inception 18 years ago. Citibank acted as co-ordinator and Quantum Zenith as Facility Agent.

Speaking at the signing, CEO, MTN Nigeria, Ferdi Moolman, expressed enthusiasm at the completion of the agreement, saying it signposts the firm’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.

Moolman lauded the participating financial institutions for staying committed to them, stressing that the loan syndication showcases the strength of the Nigerian financial institutions and their confidence in MTN’s vision, as well as both parties joint ability to stimulate significant economic growth.
   
MTN Nigeria Chairman, Pascal Dozie, described the development as a milestone and the firm was committed to ensure improved services.