MTN Ghana has secured a credit facility through a syndication worth GHC 510 million from 9 banks in Ghana to improve its infrastructure and services.
This is the second time the telecom operator is undertaking such a deal.
In 2012, MTN carried out a similar loan syndication deal to finance network expansion.
That facility was repaid in May this year, giving MTN the opportunity to enter the current arrangement.
This years’ loan facility was arranged by Ecobank Ghana and Ecobank Capital, with Barclays Bank as the main agent.
Bentsi-Enchill Letsa & Ankoma served as counsel for borrowers in the deal, while AB & DAVID represented the lenders.
The interest on the loan will be a 182-day Treasury bill rate plus five percent at the end of every six months.
The banks involved in the deal include Ecobank, GCB Bank, GT Bank, Barclays, SG-SSB, Stanbic, and Fidelity Bank. The others are Standard Chartered and Zenith Bank.
Speaking to Citi Business News the CFO of MTN, Modupe Kadiri, said the credit facility represents an efficient source of raising funds to improve MTN’s infrastructure and also provide better services.
“As a way of financing for a company of MTN’s size, this facility is efficient. We require a lot of flexibility when it comes to accessing funds to run the business. The funds are going to be used long-term developments, that’s why we chose this flexible arrangement” he said.
MTN Ghana in 2012 raised $300-million in medium-term funding facilities to expand and improve its network.
Stanbic Bank Ghana and Standard Bank South Africa, both members of the Standard Bank group, led the syndication in which a total of 20 local and international financial institutions took part in the transaction.
Like the recent GHC 510 million facility, the 2012 syndicated loan received high interest and was oversubscribed.
By: Bobbie Osei/citibusinessnews.com/Ghana