$1.2b Debt: Etisalat, Banks Hold Talks in London

By Modupe Gbadeyanka

On Friday, officials of Etisalat Nigeria had a meeting with some Nigerian banks in London to discuss ways of paying back the $1.2 billion loan it received from them in 2013.

Earlier this year, the banks involved in this matter had made attempts to take over the company, but the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) intervened and stopped the moved, suggesting another amiable way of resolving the issue.

The $1.2 billion medium-term facility was signed by Etisalat Nigeria to refinance a $650 million loan and fund the modernisation of its network.

However, the GSM network provider is battling hard to repay the debt, especially with the foreign exchange crisis in Nigeria as well as recession.

On Friday, both parties met in London to talk on the restructuring of the $1.2 billion debt.

This was confirmed by the Managing Director of Access Bank, Mr Herbert Wigwe.

Etisalat is believed to owe Access Bank N40 billion and GTBank N42 billion.

It is also believed that Etisalat Nigeria wants the banks to convert the Dollar portions of the loans to Naira, but the lenders are against this.

It was gathered that the telecoms firm is making this request to help it overcome the shortage of forex at the interbank market.

But the CBN and the NCC want this issue quickly solved so as not to send the wrong signals to investors, especially foreign investors.