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 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.
Moolman said: “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.”
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 News Agency of Nigeria reports that the loan syndication came a day after the listing of MTN Nigeria Communications shares on the Nigerian Stock Exchange.
NAN also reports that 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.