MTN Ghana signs GHS 510m syndicated loan agreement
By Nana Appiah Acquaye, Accra, Ghana
MTN Ghana, the leading mobile operator in Ghana with a market share of 47% and 56% in voice and data subscription respectively, has engaged nine local banks in the country to raise an amount of GHS 510 Million.
The result of the deal is a continuous investment aimed at boosting MTN Ghana’s capital expenditure and enabling significant investment into key strategic areas to ensure a robust network in the delivery of a bold of a bold new digital world.
The syndicated facility, which comes in two trenches, was arranged by Ecobank Ghana and Ecobank Capital with facility agent being Barclays Bank. The other syndicate banks includes Ghana Commercial Bank, Standard Chartered Bank, Barclays Bank, Stanbic Bank, SG, Zenith Bank, GT Bank and Fidelity Bank Ghana.
Speaking during a brief ceremony held at the plush MTN Icon House in Accra, the Acting Chief Financial Officer for MTN Ghana, Modupe Kadiri noted that with over 17 million subscribers, MTN Ghana has an obligation to be customer focused and continually innovative in a business that is very dynamic and highly technological hence the need to partner Ghanaian banks to raise such an amount.
“Customers have a high level of selectivity and sophiscation. This means that huge capital investments have to be made to be able to meet the demands of the market, and keep up with trends in technology, in order to be able to provide relevant products and services that will excite the market,” said.
Mr. Kadiri acknowledged the 9 local Ghanaian banks for their unrelenting efforts to raise the GHS 510 million loan facility to support MTN Ghana’s operations and he reiterated MTN Ghana’s resolved to deepen and strengthen the local banking system by declining offers from foreign banks.
“We at MTN have absolute confidence in the Ghanaian economy and the people of Ghana,” he stated.
The Acting Chief Finance Officer further expressed appreciation to the Bank of Ghana for their exceptional support in granting approval for the deal and to all the partner banks for their collective efforts and strong execution capabilities.
“The proof of our collective competencies was ultimately a highly successful outcome. I wish to reiterate our belief that everyone deserves the benefit of a modern connected life. With what we have achieved in closing this deal, I want to us this medium to assure all our stakeholders of MTN’s continuous investment in our core business which is providing world class services to our customers as well as connecting the unconnected,” he added.