MTN Nigeria Communications Plc has signed a 7-year N200 billion Medium Term Facility with a consortium of seven banks to fund emerging businesses in Nigeria.

The Chief Executive Officer, MTN Nigeria, Ferdi Moolman, signed the agreement at the law offices of Aluko & Oyebode in Lagos on Friday.

According to him, the agreement is with a consortium of seven local banks, with Citibank acting as coordinator and Quantum Zenith as Facility Agent.

Moolman said the Medium Term Facility would enable MTN to fund its evolving business opportunities while assisting with capital expenditure and working capital to deliver enhanced customer service.

He added that it followed the successful establishment of a similar 7-year N200 billion facility by MTN in 2018 and formed part of the company’s wider programme to raise domestic debt.

“I am happy at the completion of the agreement, it signposts MTN’s commitment to and confidence in Nigeria, and the strength of the strategic collaboration between MTN Nigeria and local financial institutions, that will help deepen and broaden the provision of ICT services in Nigeria.

“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 60 million 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,” he said.

Moolman lauded the participating financial institutions for staying committed to MTN, stressing that the loan syndication 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.

He said that the facility was structured with a 2-year moratorium and a repayment plan of seven years and was denominated in Naira.

He said that this was the eighth syndicated loan agreement by MTN in Nigeria since its inception 18 years ago.

He listed the providers of the facility as a syndicate of banks made up of: Access Bank, Guaranty Trust Bank, Zenith Bank, Fidelity Bank, First City Monument Bank, United Bank for Africa and First Bank. (NAN)