The country’s leading mobile telecom network, MTN Ghana, has succeeded in partnering with Nine ( 9) banks to raise GHS 510million locally syndicated facility to support working capital and infrastructure expansion.
In 2012, the company raised USD 300 million which was one of the largest syndication in Ghana outside the cocoa syndication, and which was successfully repaid in full without any default in May 2017.
MTN Ghana, the leading mobile operator, with a market share of 47% and 56% in voice and data subscription has respectfully won the heart of these local banks; with its unrivaled track record and strong leadership position in the telecommunications industry.
Speaking at the signing ceremony of the syndicated loan agreement, which took place in Accra, the Chief Finance Officer (CFO) of MTN Ghana Mr. Modupe Kadiri, hinted that the company is continuously seeking avenues to lead the delivery of a bold, new digital world to their customers in order to make their lives a whole lot brighter.
“With well over 17 million subscribers, MTN Ghana has an obligation to be customer focused and continually innovative in business that is very dynamic and highly technological.
This means that huge capital investments have to be made to be able to meet the demands of the market ‘, and keep up with trends in technology in order to be able to provide relevant products and services that will excite the market,” he explained.
According to Mr. Modupe, the deal will go a long way to boost their capital expenditure. This he said, significant investments will go into key strategic areas to ensure a robust network in the delivery of a bold digital world.
“We consider this syndicated loan agreement crucial. The funds we are receiving would impact many people.
The mobile industry employs about 4,000 people directly and over one million indirectly (phone card distributors, communication Centre operators, internet cafes, advertising agencies, suppliers, contractors, etc.).
MTN alone provides employment to about 700 primary employees and 500,000 more people through our trade channels and other parties,” he disclosed.
The Managing Director of Ecobank Ghana Mr. Daniel Sackey, speaking on behalf of the Nine (9) banks, noted that the facility they are signing was the confirmation of their willingness to support the business of MTN on the back of its strong operational and financial performance.
This he said, the deal also emphasizes the strong collaboration between the banks and telco’s in driving the digital agenda for the country.
According to him, financial inclusion which involves making financial services available to everyone is the way to go in pursuit of accelerated economic growth and digitization is one the effective and efficient ways by which this financial inclusion can be achieved.
“The completion of this transaction confirms the ability of our local banks to work together to support the growth of Ghanaian business which will, inure to the benefit of our customers and the economic growth agenda of the nation as a whole”, he added.
The Syndicate Banks are: Ecobank Ghana, Ghana Commercial Bank, Standard Bank, Barclays Bank, Stanbic Bank, SG Zenith Bank, GT Bank and Fidelity Bank.
By: Isaac Kofi Dzokpo/Newsghana.com.gh