The facility is subdivided into a US Dollar denominated segment comprising $400 million, a Naira denominated N138.6 billion term facility and N63 billion revolver facility. Standard Bank Nigerian subsidiary IBTC Chartered Bank, is the local lead arranger.
At the signing, Ahmad Farroukh, MTN's Chief Executive Officer, reiterated the company's determination to continue to play a significant role in fostering Nigeria's economic growth and development by providing excellent telecommunications and allied services across the country.
According to Farroukh, “The loan represents a strong vote of confidence in our operations and our organisation. We see this as a demonstration of the belief that the Nigerian financial industry reposed on MTN to deliver value to both the customers and the Nigerian economy.”
Atedo Peterside Chief Executive Officer of IBTC Chartered Bank Plc added that “The timing in concluding this deal and the announcement is important to us an enlarged entity resulting from the successful merger between IBTC Chartered Bank Plc and Stanbic Bank Nigeria."
Heloise Smith, Director Telecoms and Media Africa at Standard Bank said “Our vast experience in advising and funding cellular telecommunications projects across the continent led us to embrace the opportunity to partner with MTN and facilitate further growth of the Nigerian telecommunications sector”.
With a presence in all of Nigeria's 36 states and Abuja, MTN's coverage currently spans some 89% of Nigeria's total landmass. It has installed in excess of 2,800 base stations, 40 mobile switching centers and over 50 base station controllers across Nigeria.
MTN, said Farroukh, has continued to witness rapid growth. “In the face of unrelenting investment by MTN in erecting telecom infrastructure across the country, we have met surging demand for our services... Over the last two months, we have implemented perhaps the fastest rate of network deployment in this country with an increased rate of base stations deployment. With the benefit of the new loan facility, he said, “we will fast-track our network expansion even further.”
He went on to say that MTN has so far invested more than any other operator in erecting telecommunications infrastructure across the country. “Our nationwide microwave radio transmission backbone, spans some 8,497 kilometres. This, when combined with another 3,547 kilometres of fiber optic transmission backbone, translates to a growing capacity to provide telecommunications and allied services not only to telecommunications consumers but also to the wider information and communications technology industry.” He added that MTN's transmission backbone is currently the most extensive privately owned transmission backbone in Africa.
In 2006, MTN introduced a new bundle of products and services, known as the Xtraordinary bundles, which reduced tariffs and offered new value propositions to its several million customers.
Beyond providing a suite of telecommunication services, MTN dedicates 1% of its annual profits to corporate social responsibility initiatives via the MTN Foundation. Over the years, the MTN Foundation has received dozens of local and international awards for its deft and programmatic approach to sustainable development, with a clear focus on healthcare, education and economic empowerment.
