MTN Cameroon, leader of the Cameroonian telecommunications market, has signed a syndicated term loan and revolving credit facility for the sum of 60 billion FCFA. The Facility was granted by a group of six banks led by Citibank Cameroon, as Co-ordinator, Bookrunner and Mandated Lead Arranger. Banque Internationale du Cameroun pour l’Epargne et le Crédit (BICEC) and Société Commerciale de Banque Cameroun (SCB) joined in syndication as Mandated Lead Arrangers, with Standard Chartered Bank Cameroon, Société Générale Cameroun (SOCGEN) and Ecobank Cameroon joining as Arrangers.
The loan extended to MTN Cameroon is repayable over a period of 5 years. It was concluded on very competitive terms, reflecting the syndicate banks’ strong appetite for MTN Cameroon and its credit profile. It also includes a major innovation in the form of a 5-year committed revolving credit facility. This is the first financing in Cameroon to incorporate such a tranche.
The funds obtained by MTN Cameroon will permit the Company to finance its ambitious investment programme following the award of the 3G/4G licence on 11 March 2015 by the Government of Cameroon. MTN consequently envisages reinforcing the development of its network to provide its clients with the best possible service they rightfully deserve, following the alignment to 3G and the new digital world.
This loan agreement signed between MTN Cameroon and the syndicated banks led by Citibank Cameroon is further proof of the important role MTN plays in Cameroon, in its sector of activity and as a growth engine of the national economy.
Commenting on the concluded agreement, MTN Cameroon CEO, Mrs. Philisiwe SIBIYA declares “At MTN, we understand that telecommunications are an essential pillar for the growth and development of Cameroon. We intend to contribute significantly in this regard through an ambitious infrastructure programme over the next 5 years which requires massive investments. The significant facility which we have just obtained from our banking partners will reinforce our investment programme for the benefit of our consumers and the Cameroonian economy.”
Akin DADA, Executive General Manager of Citibank Cameroon S.A., on his part said “On behalf of Citi Cameroon and our colleagues in London and Johannesburg, we are honoured to have had the opportunity to lead this financing, which is a landmark for both MTN and the syndicated loan market in Cameroon. It marks an exciting new chapter for MTN Cameroon’s relationship banks, and Citi looks forward to playing its part in MTN Cameroon’s ongoing growth and success. This transaction is important to both MTN in Cameroon and the economy because it will lead to an improvement in the telecoms infrastructure and service, bringing 3G & 4G to a wider population served by MTN. We would like to thank the management of MTN Cameroon and MTN Group for their collaboration, which helped ensure that this transaction was brought to an efficient and highly successful conclusion.”