Etisalat Nigeria gets $650 mln loan to grow network

Etisalat Nigeria said on Thursday it had sealed agreements for a $650 million syndicated loan with eight local banks to expands its mobile phone network across Africa's most populous nation.

"The additional funds will be used to roll out both our 3G and 2G network on a national basis," Etisalat Nigeria chief executive officer Steven Evans said in a statement.

Etisalat said the banks involved were First Bank, Zenith Bank, Access Bank, Fidelity Bank, United Bank for Africa (UBA), Bank PHB, Guaranty Trust Bank and Oceanic Bank. Ironically, two of the banks (BankPHB and Oceanic) were recently distressed and subsequently resurrected by the Central Bank of Nigeria (CBN)

Etisalat's main rivals in Nigeria -- Africa's fastest growing telecoms market -- are South Africa's MTN, India's Bharti Airtel, and local firm Globacom. According to Etisalat Nigeria’s CEO, Steve Evans, the loan would be drawn in two tranches: the first tranche of USD550 million would be drawn in Nigerian naira, while the second tranche of USD100 million would be drawn in US dollars.

“We are delighted to have this facility and the additional funds will be used to roll out both our 3G and 2G network on a national basis, bringing our world-class service to every part of the country,” Evans commented, adding: ‘We are committed to continuing to be the fastest growing 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.’