MTN Nigeria has signed a 200 billion naira ($636 million) loan with a consortium of 12 lenders to fund capital expenditure and working capital, it said on Thursday.
The seven-year facility will enable MTN expand its voice network and data service, the company said in a statement. It said the naira-denominated loan has a two-year moratorium and a five-year repayment plan.
The move comes as telecoms operators seek to expand mobile services to boost margins and access new revenue streams.
South Africa’s MTN, the continent’s biggest telecoms group, recently signed an agreement with Ecobank to form a partnership on mobile banking across Africa.
Lenders in the financing mix include Citibank, Diamond Bank, Ecobank, Fidelity Bank, First Bank, FCMB, Standard Chartered, Stanbic IBTC Bank, UBA, Union Bank, Rand Merchant Bank and FSDH Merchant Bank.
MTN, which has the largest market share in Nigeria with 55 million subscribers, is also planning a separate listing of its Nigerian business by the end of the year.
