MTN dumps foreign cheap loan for Nigeria banks’ N200bn consortium facility
In quick succession, the MTN Nigeria Plc has in 24 hours of listing on the Nigerian Stock Exchange (NSE), sealed fresh seven-year N200bn medium term facility with a consortium of seven mostly local banks.
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. In a terse statement Friday by the Company Secretary, Uto Ukpanah, to the Nigerian Stock Exchange (NSE) in line with its post listing requirements, MTN revealed the seven banks lead by Access Bank to include GT Bank, Zenith International Bank, Fidelity Bank, First City Monument Bank, United Bank for Africa and First Bank of Nigeria Limited.
Business Hilights gathered that whereas the facility was coordinated by Citibank, Quantum Zenith acted as facility agent.
In his remarks, chief executive of MTN, Mr Ferdi Moolman, explained that the facility indicated MTN’s confidence in Nigeria and local financial institutions.
According to him, “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.
Recall that confidence of the Exchange soared same day of the listing as at the end of trading, market capitalisation of equities listed on the Exchange rose by N1.90tn few hours after MTN Nigeria Communications Plc listed 20.35 billion shares on the Exchange.
Otherwise, the stock market rose by 0.54 per cent at the close of trading, ending its eight-day losing streak. The market capitalisation rose to N12.52tn on Thursday from N10.63tn on Wednesday, as the market capitalisation of MTN added N1.83tn to the market value of equities.
Continuing, Moolman averred that “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.”
He emphasized that the syndicated loan further 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.