MTN Nigeria says it has signed loan agreements to the value of US$2.15 billion with 17 banks to enable the company to further expand its network.
A consortium of 15 Nigerian banks has agreed to extend a facility of 250-billion naira five-year syndicated loan.
The loan to the company was upscaled from 207 billion naira when it was 151% subscribed, while two foreign banks are providing further funding of US$450 million.
MTN arranged the facilities itself.
For the dollar denominated part of the funding, Germany's KfW Ipex is providing a US$250 million credit export facility to cover purchases of Ericsson equipment, and Industrial and Commercial Bank of China is providing a US$200m Buyer's Credit facility to purchase equipment from Huawei.
The Nigerian banks include: Access Bank, Afribank Nigeria, Bank PHB, Citibank Nigeria Limited, Diamond Bank, Ecobank Nigeria, First City Monument Bank, Fidelity Bank, First Bank of Nigeria, Guaranty Trust Bank, Stanbic IBTC Bank, Standard Chartered, Bank Nigeria, Union Bank of Nigeria, United Bank of Africa, and Zenith Bank.
MTN CEO Ahmad Farroukh said: "These facilities provide us with a strong financial basis to pursue our goal of extending service to more Nigerians who are yet to experience the telecom revolution, while also improving the quality of service on the network.
"The loans demonstrate immense confidence by these global financial players in the managerial competence of MTN and its commitment to its mission of providing peerless telecom services across Nigeria.
"The loans will go a long way in fast-tracking our network enhancement efforts."
As at 31 March 2010, MTN Nigeria recorded over 33 millio n customers.
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