12 Nigerian banks give N200bn loan to MTN - Trends and Politics

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Wednesday, 15 August 2018

12 Nigerian banks give N200bn loan to MTN

Ferdi Moolman

A seven-year medium term loan facility worth N200bn has been given to MTN to Nigeria to fortify its network and services by a consortium of twelve Nigerian banks. 
A two-year moratorium and a repayment plan of five years is also structured with and denominated in Naira. 
The loan was provided by Citibank Nigeria, Diamond Bank, Ecobank, Fidelity Bank Plc,  First Bank Plc, FCMB, FSDH Merchant Bank,  Rand Merchant Bank,  Standard Chartered Bank,  Stanbic IBTC, UBA and Union Bank.
With this loan, MTN will be able to provide optimum services and products for its over 55 million customers. The loan will also enable MTN to fund it's capital expenditure, working capital and other evolving business opportunities.
The agreement was formally signed at  the law office of Aluko & Oyebode in Ikoyi, Lagos. 
Chief Executive Officer, MTN Nigeria, Ferdi Moolman who spoke at the agreement signing ceremony said completion of the agreement signposts confidence in MTN's commitment to Nigeria and the strength of the strategic collaboration between MTN Nigeria and local financial institutions in deepening the provision of ICT services in Nigeria.
According to him, "The signing of this loan facility is a major landmark in our expansion programme  in which we are making significant investments. 
"The facility will enable us 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".
Ferdi Moolman praised the participating financial institutions for staying committed to MTN, adding that the loan has proven the strength of the Nigerian financial  institutions  and their confidence in MTN's visions, as well as both parties' joint ability to stimulate significant economic growth.
Chairman, MTN Nigeria, Pascal Dozie appreciated the banks for their confidence in MTN, despite pressures they (the banks) face in terms of credit.
Akin Oyebode who represented Dozie said MTN couldn't have easily managed operations the way it had for the past 17 years of operating in Nigeria, without the support of the banks. 

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