Banks

Africa’s leading telecoms operator, MTN signed an agreement with nine local commercial banks here on Thursday in which the nine banks are providing 510 million Ghana cedis or 113. 29 million US Dollars syndicated financing for investments into its operations in Ghana.

At the ceremony, Madupo Kadri, Acting Chief Executive Officer (CEO) of MTN Ghana described the ‘huge’ interest shown in MTN by local investors was a clear demonstration of how successful the business had become in Ghana.

“The result of this deal is a continuous investment and will further boost our capital expenditure and enable significant investments into key strategic areas to ensure a robust network in the delivery of a bold new digital world,” Kadri noted.

Lead Arrangers of the facility is Ecobank with Standard Chartered Bank, Barclays Bank and Stanbic bank, providing support for the funds at a 182 day Treasury Bill rate (13.8 percent) plus five per cent.

By looking within Ghana to raise the money, the CEO said MTN was demonstrating its resolve to deepen and strengthen the local banking industry by declining offers from foreign banks, adding: ”We at MTN have absolute confidence in the Ghanaian economy and the people of Ghana.”

On his part, Managing Director of Ecobank Ghana Dan Sackey noted that the story of the deal was a huge success with an over-subscription of 2.09 times in spite of the macro-economic challenges in the country.

“Following the initial debt raising transaction of 2012 and its successful repayment , MTN continued to spur growth and established itself as a market leader in Ghana. Its unrivalled track-record and strong leadership position paved the way for this utterly successful debt capital markets transaction,” Sackey intimated.

MTN is the leading mobile telecom service provider in Ghana with more 17 million voice subscribers while many more are on its mobile internet products with a fast growing Mobile Money business as well. Enditem

Source: Xinhua/NewsGhana.com.gh

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