MTN Nigeria Communications Plc on Friday signed a seven-year 200
billion naira medium term facility with a consortium of seven
mostly local banks.
The company stated this in a statement by its Company Secretary,
Uto Ukpanah, to the Nigerian Stock Exchange (NSE) in line with its
post listing requirements.
The company said the seven banks were Access Bank, GT Bank,
Zenith International Bank, Fidelity Bank, First City Monument Bank,
United Bank for Africa and First Bank of Nigeria Limited.
The telecommunications firm said the facility was coordinated by
Citibank, while Quantum Zenith acted as facility agent.
It noted that the medium-term facility would enable the company
to fund its evolving business opportunities while assisting with
capital expenditure and working capital, to deliver enhanced
customer service.
Commenting on the facility, Ferdi Moolman, the company’s Chief
Executive Officer, said the facility indicated MTN’S confidence in
Nigeria and local financial institutions.
“This facility expands our existing successful domestic debt
programme which we are using to fund increased network capacity and
the expansion of both the voice and data services on our network to
customers in new areas.
“We have enjoyed remarkable funding support for Nigeria’s
financial institutions since our first facility in 2003 and this
has been critical to the development of the largest
telecommunications network in Africa,” Mr Moolman said.
He said the syndicated loan showcased 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.
The loan syndication came a day after the listing of MTN Nigeria
Communications shares on the Nigerian Stock Exchange (NSE).
MTN Nigeria on May 16 listed a total of 20.35 billion shares at
N90 per share.
The stock at the first trading day rose by N9 to close at N99
per share.
The shares are currently trading at N108.90 per share.
(NAN)
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