MTN Nigeria Signs 200 Bln 7-Yr Syndicated Facility With 7 Local Banks

MTN Nigeria has signed a 7-year 200 billion naira syndicated loan facility with a consortium of mostly local banks, the telecoms firm said on Friday.

In a statement to the Nigerian Stock Exchange (NSE), the telecoms firm said the facility was coordinated by Citibank while Quantum Zenith acted as facility agent.
"The medium-term facility will enable MTN to fund its evolving business opportunities while assisting with capital expenditure and working capital, to deliver enhanced customer service," the telecoms firm said in the statement.
Ferdi Moolman, MTN chief executive said the facility signposts the company'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," Moolman said.
He said the syndicated loan showcases 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 local unit of South African telecoms firm was listed by introduction on the NSE with a total of 20.4 billion shares quoted at 90 naira per share.
The firm has since gained a cumulative of 20 percent in the two days of trading to close at 108.90 naira per share as investors demand for the telecoms firm's shares remains strong.