On Wednesday 13 December 2017 MTN, Ghana’s largest telecommunications service provider, announced that it has signed a $113 million (GH¢510 million cedi) syndicated loan facility. The syndicated loan facility was arranged jointly by Ecobank Ghana Limited and Ecobank Development Corporation (EDC) and will be used to finance MTN Ghana’s infrastructure expansion and working capital needs across the country.
The loan with five years tenor is made up of two facilities. The first one is a fixed five-year term facility of $76.5 million (GH¢ 345 million) with 24 months moratorium to support capital expenditure plans; and the Revolving Credit Facility of $36.5 million (GH¢165 million) over the five year period for working capital and general corporate purposes.
Speaking at a ceremony to sign the loan, the Chief Finance Officer and Chief Executive Officer of MTN Ghana, Modupe Kadri, said, “MTN Ghana requires flexible funding to meet our esteemed stakeholders’ expectations. We are therefore pleased that today through this syndicated facility, we have succeeded in partnering 9 local banks to raise GH¢ 510 million”.
“The huge interest in MTN’s business is a clear testament to how successful our business is and the excellent financial health the business enjoys” he added.
The signing of the syndicated loan follows an initial debt raising transaction in 2012 of $300 million and its successful repayment by MTN Ghana in May 2017.
This big-ticket Ghana transaction was arranged jointly by Ecobank GhanaLimited and EcobankDevelopment Corporation (EDC) as Mandate Lead Arrangers with Barclays Bank GhanaLimited as joint facility and Security Agents. The syndicate banks are: Ecobank Ghana Limited, GCB Bank Limited, Standard Chartered Bank Ghana Limited, Barclays Bank Ghana Limited, Stanbic Bank Ghana Limited, SocieteGeneraleGhana, Zenith Bank Ghana Limited, Guaranty Trust Bank Ghana Limited and Fidelity Bank Limited.