Is MTN’s decision to sign a N200 billion loan deal a hit or miss?
24 August 2018
Telecommunications giant, MTN Nigeria has signed a loan deal worth N200 billion in Lagos. The seven-year medium-term facility loan deal which was facilitated by a posse of local financial institutions was signed at the office the foremost commercial law firm Aluko & Oyebode in Ikoyi, Lagos Island.
The loan which is said to be channelled towards the company’s capital expenditure is denominated in Naira and is expected to be repaid within seven years. The event was attended by many industry players, top officials from the telecommunication companies, stakeholders in the financial sector and officials of the participating banks.
A total of twelve local banks facilitated the loan deals. Some of the banks are; Diamond Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria Plc, First City Monument Bank (FCMB) Limited, and United Bank for Africa (UBA) Plc.
According to top officials of the telecommunication giant, the loan which has a two-year moratorium and a five-year repayment plan will help MTN Nigeria scale up it services and also add more customers to its network of 55 million users. “The signing of this loan facility is a major landmark in our expansion programme in which we are making significant investments,” said Ferdi Moolman, MTN Nigeria, Chief Executive Officer after the signing of the loan deal in Lagos on Wednesday. Read the full article on Ventures here.