MTN secures 200 billion Naira loan from 12 Nigerian banks for telecoms expansion drive

MTN Nigeria, a leading Telecommunications Company, has secured an N200 billion medium-term loan agreement from a collection of 12 Nigerian banks. The loan deal was sealed yesterday in Lagos, it will allow MTN expand its services to other parts of the country, especially the underserved and unserved areas.

MTN secures 200 billion Naira loan from 12 Nigerian banks for telecoms expansion drive

The deal is coming with few months to the repayment of a previous loan of N329 billion borrowed in 2013 for capital expenditure and working capital, to which it had kept to the servicing agreements. This is coming just three weeks after MTN experienced a 35 per cent dip in rural telephony expansion in Nigeria.

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Ferdie Moolman, MTN Nigeria Chief Executive Officer at the agreement signing said,

“This will make it possible for people to connect with each other and the world, find and share information and ideas, create and access new digital services and re-imagine old services.”

The deal came at a good time as MTN clocked 17 years and one week in Nigeria yesterday. The deal will help with  Capital Expenditure (CAPEX) roll-out, Internet expansion, and rural telecoms service expansion.  the facility was structured with a two-year moratorium and a repayment plan of five years and is denominated in Naira.

The banks that provided the loan are,
Citibank Nigeria,
⏩Diamond Bank
⏩Ecobank
⏩Fidelity Bank Plc
⏩First Bank Plc
⏩FCMB
⏩FSDH Merchant Bank
⏩Rand Merchant Bank
⏩Standard Chartered Bank
⏩Stanbic IBTC
⏩UBA
⏩Union Bank.

On behalf of the Chairman of MTN Board in Nigeria, Pascal Dozie, Gbenga Oyebode during his welcome address attributes the companies success to the support of the banks saying,

“Despite pressures on the banks, they have supported our equipment purchase, network roll-out, and expansion plans. Today’s deal further demonstrates their belief in us”

While speaking on behalf of the banks, An Executive Director, Corporate Banking, First Bank Plc., Remi Oni said the bank was happy to be part of the deal which showed the true value of the MTN brand,

“First Bank is committed to sustaining the business of MTN in Nigeria. As a lender, we came to this deal excited that we are doing the right thing”

In addition, Emeka Okonkwo from Union Bank said the bank had done a lot of background work on MTN, and that partnering with it had impacted Nigeria greatly.

“We are happy to be part of this deal because we have a great partner in MTN”.