MTN Ghana wants to borrow USD512 million from Ecobank

MTN Ghana wants to borrow USD512 million from Ecobank

MTN Ghana said it will be increasing its appetite for debt by borrowing extra USD112 million from Ecobank.

According to Reuters News, the debt package will be a syndicated loan facility arranged by Ecobank, sources close to the deal

Reuters also reported that the medium-term facility, which will be signed on Thursday, has been raised from nine banks and was oversubscribed by 590 million cedis.

The company’s debt financing will be in addition to its 2012 raised USD300 million from a similar loan to finance network expansion, but this was repaid by the end of May this year.

MTN Ghana is owned by MTN Group, a South African-based company with more than 500 million subscribers across over 20 countries.

MTN Nigeria, the group’s largest subsidiary revenue and market share has not declared any borrowing plans. As a matter of fact, it has cut down its capital expenditure by more than 50% in the last one year due to stricter regulations and a NGN33 billion fine it paid to Nigeria for network infractions.