A day after it was admitted to the main board of the Nigerian Stock Exchange (NSE), Nigeria’s telecommunications market leader, MTN Nigeria, has secured a 7-year N200 billion medium term facility. The deal was sealed with a consortium of seven banks. According to a press release by the company signed by Uto Ukpanah, company secretary, the facility was structured with a 2-year moratorium and a repayment plan of seven years and is denominated in the local currency, naira. The latest deal will be the eight syndicated loan agreement by MTN in Nigeria since it came on board in 2001.
The local banks that syndicated the loans are Access Bank, Guaranty Trust Bank (GTB), Zenith Bank, Fidelity Bank, First City Monument Bank, United Bank of Africa (UBA) and First Bank of Nigeria Limited (FBN). Citi Bank acted as co-ordinator while Quantum Zenith was the facility agent.
The seven domestic banks had N10.62 trillion as loans and advances to customers as at the end of the first quarter 2019. From this, Access Bank accounted for 24 percent or N2.60 trillion; GTB, 12 percent or N1.28 trillion; Zenith Bank, 17 percent or N1.79 trillion; Fidelity Bank,9 percent or N966.25 billion; FCMB, 6 percent or N615.19 billion; UBA, 16 percent or N1.69 trillion while FBN with N1.67 trillion controlled 16 percent of the loans and advances of these banks as at the end of Q1 2019.
The loan deal agreement was signed at the law offices of Aluko & Oyebode in Ikoyi Lagos, in the presence of key partners and other stakeholders. The medium term facility will enable MTN fund its evolving business opportunities while assisting capital expenditure and working capital, to deliver enhanced customer services. It follows the successful establishment of a similar seven year, N200 billion facility by MTN in 2018 and forms part of the company’s wider program to raise domestic debt.
“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, and with new next generation services. We have enjoyed remarkable funding support from Nigeria’s financial institutions since our first facility in 2003 and this has been critical to the development of one of the largest telecoms network in Africa, with over 60m subscribers. I am delighted that, so soon after our successful listing on the Nigerian Stock Exchange, we are able to compliment it with such an important addition to our portfolio of debt”, Ferdi Moolman, MTN Nigeria’s CEO, said.
He further stated that the completion of the agreement indicated its commitment to and confidence in Nigeria, and the strength of the strategic collaboration between MTN Nigeria and local financial institutions, that would help deepen and broaden the provision of ICT services in Nigeria.
At the close of business last week Friday on the NSE, investors traded 48.36 million shares of MTN Nigeria worth N5.53 billion. Its share price gained 10 percent to close at N108.90 per share, representing 21 percent price appreciation year to date.
MTN Nigeria on May 16, 2019 was admitted to the main board of the NSE when its entire issued 20,354,513,050 ordinary shares were listed by way of introduction at the price of N90 per share.
TELIAT SULE
