By Dayo Oketola

The Emerging Markets Telecommunications Services Limited, trading as Etisalat Nigeria in the country, has finalised a $650m (N97.5bn) loan deal with a consortium of eight Nigerian banks to expand its network.

The loan, which is divided into a naira component of N82.5bn and a dollar component of $100m, is being packaged by First Bank of Nigeria Plc, Zenith Bank Plc, Access Bank Plc, Fidelity Bank Plc and United Bank for Africa Plc. Others are Bank PHB Plc; Guaranty Trust Bank Plc and Oceanic Bank International Plc.

The Chief Executive Officer, Etisalat Nigeria, Mr. Steven Evans, said that the syndicated loan facility would offer Etisalat the opportunity to aggressively intensify its network expansion across the country and offer even better quality services to its over seven million customers.

Evans said, “We are delighted to have this facility and the additional funds will be used to roll out both our 3G and 2G networks on a national basis, bringing our world-class service to every part of the country.

“We are committed to continuing to be the fastest growing and most innovative mobile operator in the market, and believe that our focus on providing the highest level of customer service and quality of service is what Nigerian consumers have been asking for and deserve.”

The Chairman, EMTS, Mr. Hakeem Belo-Osagie, noted that the loan represented a critical milestone in the growth of the company.

He said, “It is significant that Nigerian banks are availing us of a facility, which will be a boost for our long-term growth, and by implication, growth for the sector and the wider economy. The loan underpins their belief in and support for the EMTS vision and the management team of the business.”

“We are grateful for the support of all the lending banks, whose contribution made this loan possible. We must also acknowledge the critical contribution of the Federal Government of Nigeria and the regulatory agencies, who have together created an enabling environment that has made our success possible.”

The Chief Financial Officer, Etisalat Nigeria, Mr. John Maguire, said that the transaction showed that the banking syndicate believed in the company’s business plan and had confidence in its future.

Etisalat Nigeria had recently acquired Alheri Mobile Services Limited, a fully owned subsidiary of the Dangote Group and a recipient of a 3G licence from the Nigerian Communications Commission.

With acesss to a 3G licence like the other three GSM companies in the country, analysts said that Etisalat had every reason to seek for the syndicated loan to improve on its positioning in the telecoms industry.

Evans had also said that the company would invest $400m in 2011; noting that $50m out of the money would be specifically spent on 3G equipment.

He noted that the company did not acquire only the licence but “acquired the company that has the licence.”

Source: Punch