MTN, Ghana’s largest telecommunications service provider has announced the signing of a GH¢510 million cedi syndicated loan facility. The syndicated loan facility arranged jointly by Ecobank Ghana Limited and Ecobank Development Corporation (EDC) will be used to finance MTN Ghana’s infrastructure expansion and working capital needs across the country.
The GH¢ 510 million facility with five years tenor is made up of two facilities. First, the fixed five year term facility of GH¢ 345 million with 24 months moratorium to support capital expenditure plans; and the Revolving Credit Facility of 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 Ag. 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 nine (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 GH¢510 million syndicated loan follows an initial debt raising transaction in 2012 of $300 million and its successful repayment by MTN Ghana in May 2017. MTN’s unrivaled track record and strong leadership position paved the way for yet another successful capital market transaction.
This big-ticket Ghana transaction was arranged jointly by Ecobank Ghana Limited and Ecobank Development Corporation (EDC) as Mandate Lead Arrangers with Barclays Bank Ghana Limited 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, Societe Generale Ghana, Zenith Bank Ghana Limited, Guaranty Trust Bank Ghana Limited and Fidelity Bank Limited.
Credit: MTN Ghana