By Dipo Olowookere
A Naira-dominated loan of N200 billion has secured by MTN from a consortium of 12 Nigerian banks to enable it expand its operations in the country.
The 12 Nigerian lenders are Citibank, Diamond Bank, Ecobank, Fidelity Bank, First Bank, FCMB, Standard Chartered, Stanbic IBTC Bank, UBA, Union Bank, Rand Merchant Bank and FSDH Merchant Bank.
According to a statement issued by the telecommunications company, the loan is to fund capital expenditure and working capital.
The seven-year facility will enable MTN expand its voice network and data service, the company said in a statement. It said the naira-denominated loan has a two-year moratorium and a five-year repayment plan.
MTN, which has the largest market share in Nigeria with 55 million subscribers, about 41 percent market share, is also planning a separate listing of its Nigerian business by the end of the year.
According to the Nigerian Communications Commission (NCC), this listing must happen before end of May 2019.
Business Post reports that few years ago, 9mobile, formerly Etisalat Nigeria, secured Dollar-dominated loan of $1.2 billion from 13 Nigerian financial institutions to also expand its operations in the country.
However, the firm was unable to repay the loan, forcing the present move to source a new investor for the fourth largest telco in Nigeria.
