Stanbic IBTC Bank, a Standard Bank unit in Nigeria has disclosed that Etisalat owes the bank USD24 million.
This is approximately NGN7.3 billion using the current official exchange rate.
The bank made the statement to analysts in Lagios adding that restructuring talks were “ongoing”.
Etisalat Nigeria, a subsidiary of Abu Dhabi-listed telecoms company Etisalat UAE has been discussing with 13 local banks about renegotiating the terms of a USD1.2 billion loan after missing a payment.
“The members are continuing discussions with Etisalat with the hope of restructuring the loan,” the bank told an analysts’ call in Lagos, Nigeria’s commercial capital.
Etisalat UAE with over 41% stake in the Nigerian unit has refused to convert the loan to equity. The company has been hinted to be planning to sell off its stake in the Nigerian telecom company.
Two weeks ago, affected banks rejected the offer of the company to pay its debt in Naira (NGN). Bankers are of the opinion that they will incur huge losses as a result of the source of the funds which were borrowed via bonds and other Forex debts.
Etisalat Nigeria currently has about 20 million subscribers in market with MTN Group’s MTN Nigeria having the largest market share.
Note: USD1 = NGN306
