MTNC obtains 60 billion FCFA loan from 5 Cameroonian banks
MTN Cameroon has announced the signing of an Accordion (Tranche C) of a Syndicated Medium Term loan of XAF 60 billion FCFA at the company’s Headquarters in Douala, Littoral Region. This loan represents the third, and final part of a syndicated Medium-Term Facility agreement signed on 8 June 2015 by MTN Cameroon and several Cameroonian banks. Within the framework of the aforementioned loan agreement, MTN Cameroon benefitted a 3-part Facility comprising of a fixed portion of XAF 30 billion, a revolving portion of the same amount, and an Accordion which was successfully concluded today.
The Accordion Facility was granted by a group of 5 banks led by Citibank Cameroon, as Co-ordinator, Bookrunner and Mandated Lead Arranger, with Société Commerciale de Banque Cameroun (SCB), Afriland First Bank Cameroon, Société Générale Cameroun (SOCGEN), and Standard Chartered Bank Cameroon joining as Arrangers.
The loan extended to MTN Cameroon is repayable over a period of 5 years and proof of a successful private partnership to enhance sustainable development. It was equally concluded on very competitive terms, reflecting the present global situation of cash in the CEMAC zone.
The funds obtained by MTN Cameroon will permit the Company to further finance its ambitious investment programme for the benefit of the Cameroonian consumer through the provision of premium digital products and services to enhance communication, productivity and connectivity following the award of the 3G/4G licence on 11 March 2015 by the Government of Cameroon.
Commenting on the concluded agreement, MTN Cameroon CEO Mrs. Philisiwe Sibiya declared: “MTN Cameroon has always respected its contractual engagements by reimbursing the loans without any incident. As the telecommunications leader and an African company committed to contribute decisively to the development of this sector on the continent, we understand that telecommunications are key to instil the impetus necessary for future growth, and we intend to continue contributing significantly in this regard”.
This loan agreement signed between MTN Cameroon and a syndicate of banks led by Citibank Cameroon is further proof of the important role MTN plays in Cameroon, in its sector of activity and as a growth engine of the national economy.