Nigerian banks have asked Abu Dhabi-listed telecom group Etisalat to inject fresh equity into Etisalat Nigeria after the affiliate missed a payment on its $1.2 billion loan, a senior banking source told Reuters.
The banking source with knowledge of matter said Etisalat Nigeria had given notice to Nigerian lenders that it would miss a February payment which triggered a debt discussion, adding that they were yet to agree on terms.
The source said lenders have asked Etisalat Nigeria to convert shareholder loans on their books into equity and inject fresh capital to free up its cash flows, in addition to asking that its parent firm to increase its 40 percent stake in the affiliate.