MTN Nigeria, a major player in Nigeria's telecommunications
industry, has received a major boost to its expansion plans following
acquisition of a $3 billion ( ? 470 billion) loan facility
from a consortium of local and international banks.
The loan will enable MTN to expand, modernise, and improve its
network infrastructure. The $3 billion comprises $1.2 billion in an
existing restructured local facility and $1.8 billion in
additional facilities. The banks involved are Zenith Bank ,
with ? 55 billion; Guaranty Trust Bank , with ? 40 billion; First Bank , with ? 40 billion; and Access Bank , with ? 35 billion.
Speaking at the signing ceremony held in Lagos on 23 April, MTN
CEO Brett Goschen stated that MTN had invested $1.6 billion in 2012 and
was looking to invest about $1.5 billion in 2013. The network
has been involved in several other similar strategic
partnerships with financial institutions, notably a $170 million
commercial paper facility secured in 2002 and a $395 million
medium-term facility in 2003.
With the introduction of mobile number portability in Nigeria
on 22 April and recent complaints from users about the seemingly
downward spiral of network quality, subscribers will no doubt be
pleased that the company is investing massively in improving
its network. Though MTN had undertaken an aggressive PR drive to
attract customers wishing to migrate from other networks, some
subscribers were sceptical that the network could cope with an influx.
For more news and expert
analysis about Nigeria, please see Nigeria Focus and Nigeria
Politics & Security.
© 2013 Menas Associates
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