Etisalat in $1.2 billion in syndicated loan deal with Zenith bank, First bank, others.
The company plans to use the proceeds to refinance existing commercial medium-term debt of $650m and continue its network rollout across the country. It will also continue the release of innovative products and services to its over 15 million subscribers.
Other banks involved in the deal are United Bank of Africa Plc, Fidelity Bank Plc, Access Bank Plc, Ecobank Plc, Keystone Bank Limited, First City Monument Bank Plc, FSDH Merchant Bank, Mainstreet Bank Limited, Stanbic IBTC Bank Plc and Union Bank Plc.
The loan facility comes in both naira and United States dollar components.
Speaking on the transaction, the Chairman, EMTS, Mr. Hakeem Belo-Osagie, said the loan was yet another key step in the company’s development.
He said, “Etisalat Nigeria has grown from strength to strength, reaching 15 million subscribers earlier this year. This loan is a testament to the robust strategy of the company and the faith of the banking community.
“It will serve to further boost the company and the telecommunications sector. It is important to also note the enabling environment created by the federal and state governments of Nigeria as well as the Nigerian Communications Commission.”
Also speaking on the transaction, the Chief Executive Officer, Etisalat Nigeria, Mr. Steven Evans said, “We are delighted with the continued support and confidence shown by so many banking partners. They have shown great faith in the company since launch, and we view that as a sign of their endorsement of Etisalat Nigeria’s strategy and execution capabilities.
“We aim to continue to focus on our network expansion, our investment in 3G, as well as ensuring that we offer the uncompromising network quality and customer service our subscribers have come to expect from us.”
Zenith Bank, which is the lead arranger and major contributor to the facility, is to raise about N38.8bn in the tranche A, and another $30m for the tranche B.
The Divisional Head, Corporate and Commercial Banking, FCMB, Mr. Ola Olabinjo, said, “For us in FCMB, one of the cardinal concepts is to support any financing scheme that will impact positively on the economy and society.
“FCMB is aware that the Nigerian telecoms sector remains a key driver of the economy and Etisalat has shown growth potential within the period it has been in business in Nigeria.”
Etisalat Nigeria has benefited from the experience and support of its pioneer shareholders, Etisalat Group, Mubadala and Myacynth.
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