13 banks raise $1.2bn for Etisalat to curb " i don port oooo"

A consortium of 13 local banks, including Zenith, Guaranty Trust, Access and First Bank, yesterday signed a loan syndication agreement to poll a total of $1.2 billion medium term facility for Emerging Markets Telecommunications Services (EMTS) Ltd., Etisalat Nigeria Limited, to enable it refinance existing facilities and to help upgrade its operations across the country.

The 7-year financing deal, with naira and dollar components of N155 billion and $200 million, respectively, was led by Zenith Bank, which is also contributing about N38.8 billion.

Etisalat Chief Executive, Steven Evans, who spoke after the signing ceremony, hinted that besides refinancing current $650 million medium term debt, part of the proceeds of the loan syndication would enable it build additional 1000 cell sites in 2013, and about 2400 others from 2014.

He said the company has also commenced rehabilitation of some of its cell sites destroyed by Boko Haram in the North East as it has no plans to withdraw its services there despite losses resulting from the insurgency. “We aim to continue to focus on our network expansion, our investment in 3G, as well as ensuring we offer the uncompromising network quality and customer service our subscribers have come to expect from us.”

Other banks that featured prominently in yesterday’s transactions include United Bank for Africa, Fidelity Bank, Ecobank, Keystone Bank, First City Monument Bank, FSDH Merchant Bank, Mainstreet Bank, Stanbic IBTC Bank and Union Bank.

Present at the event were the Managing Directors of UBA Philip Oduozor, Emmanuel Emefiele of Zenith Bank and Segun Agbaje of GTB, among others,  described the deal as an indication of the robust capacity of Nigerian banking industry.

Divisional Head Corporate and Commercial at FCMB, Mr Ola Olabinjo, said his bank would continue to support financing initiatives that will impact positively on the economy and society, considering that telecoms sector has been a key driver of development in the Nigerian economy.

EMTS Chairman, Hakeem Belo-Osagie, said the loan was another milestone in the annals of the firm, adding that Etisalat now has a subscriber base of over 15 million.