The Vanguard reports that MTN Nigeria has secured a N470 billion (approximately $3 billion) medium-term financing from a consortium represented by 17 Nigerian banks and five global financial institutions.
According to the report finance was sourced from a consortium which included Zenith Bank, the co-ordinating bank, GTB, First Bank, Access, Fidelity, UBA and Union Bank, as well as FCMB, Ecobank and Stanbic IBTC, amongst others.
With its allocation of N55 billion (approximately $347 million) Zenith Bank is reportedly the lead arranger writes The Vanguard. Foreign financial institutions contributing include those from China, South Africa and Europe.
The funding ratio is reportedly 70% from the local consortium and 30% from foreign institutions according to a seven-year repayment plan.
The deal is expected to help MTN expand and enhance its network.
Brett Goschen, CEO of MTN Nigeria, is quoted as saying, “Ordinarily, Naira funding is usually costly but it reduces risk. We deliberately made the bulk of the financing from local currency because we do not know what the rate of Naira to dollar will be in future. We may predict the forex between one and two years but definitely not in seven years.”