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    Categories: BusinessOn the Go

MTN takes N200bn loan from 12 Nigerian banks

MTN Nigeria has signed an N200 billion medium-term loan agreement with 12 Nigerian banks.

FBN Quest is the facility agent of the loan deal which was signed on Wednesday.

According to the company, the loan is to help fund its service expansion plans to underserved and unserved parts of the country.

The banks which signed the loan are Citibank Nigeria Limited, Diamond Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria PLC, First City Monument Bank, FSDH Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, Standard Chartered Bank Plc, Stanbic IBTC Bank Plc, United Bank of Africa Plc and Union Bank of Nigeria Plc.

The loan, which is naira denominated, has a five-year repayment plan and two-year moratorium.

“The signing of this loan facility is a major landmark in our expansion programme in which we are making significant investments,” Ferdi Moolman, MTN Nigeria, chief executive officer, said.

“The facility will enable us to evolve the network to deliver convergent and superior quality, drive voice capacity expansion and data service penetration, maintain optimal capital structure and funding level that support growth and expansion.

“Making it possible for people to connect to each other and the world, find and share information and ideas, create and access new digital services and reimagine old services. This partnership puts in place infrastructure that empowers commerce, industry and the provision of public services.”

The company, which has its headquarters in South Africa, is the largest telecommunications service provider in Nigeria.

According to the latest figures made available by the Nigeria Communications Commission (NCC), MTN holds 40.96% of the market share with 66.48 million subscribers.