Sub-Saharan Africa Press Releases
Created: June 30, 2003. Last Updated: July 06, 2010.
IFC’s International Bank Lending Catalytic Role in $395 Million Syndicated Loan to MTN Nigeria Scoops “Africa Telecoms Deal of the Year” Award
In Washington:
Ahmed Badawi-Malik
Phone: +1 (202) 458-7148
Fax: +1 (202) 974-4384
Email: Abadawi@ifc.org
WASHINGTON, D.C./LONDON, March 5, 2004 —
The International Finance Corporation, the private sector arm of the World
Bank Group, received the “Africa Telecoms Deal of the Year” award at
Euromoney’s Project Finance Magazine 4th Annual Awards Dinner at
the Millennium Hotel, London, for its key role in a $395 million syndicated
loan to MTN Nigeria Communications Limited (MTNN), the country’s leading
operator, announced on November, 21, 2003; IFC contributed $100 million
to the financing package – one of its largest ever investments in the
telecommunications sector, and the corporation’s second largest investment
in Africa so far.
The Project Finance (http://www.projectfinancemagazine.com)
award for IFC’s – international and local bank lending - catalyzing role
in the MTNN financing package represents a dual accolade to its Sub-Saharan
Africa and Global Information & Communications Technologies departments.
Project Finance said the award reflected that “The IFC part of
the loan helped encourage other international lenders to provide the largest
ever local currency debt facility Nigeria has seen – 10 times as big as
its closest comparable deal.” Project Finance added, “Another key
factor that swayed the Africa Telecoms Deal of the Year award to IFC is
that its pivotal presence in the loan helped deepen local capital markets
by catalyzing the largest non-natural resource financing ever seen in Africa.”
Haydee Celaya, IFC Director for Africa, noted that the Project Finance
award for IFC’s catalytic role in the financing package, which MTN is
using to expand and improve its network in Nigeria, was “all the more
satisfying because the MTNN transaction fitted so well with IFC’s strategy
for Nigeria anyway, namely, it facilitated private participation in key
areas of infrastructure, spurred financial sector deepening, and has supported
the government’s reform of the telecommunications sector.”
Note to Editors: Aside from IFC senior ‘A’ loans, the $395 million
financing package to MTNN comprised a domestic currency syndicate of Nigerian
banks, and parallel loans from Standard Chartered Merchant Bank, DEG and
FMO. Citigroup (London) and Standard Bank (London) arranged the total financing
package to support MTN Nigeria’s $1.3 billion capital expenditure program.
MTN Nigeria is part of MTN Group (www.mtngroup.com),
one of Africa’s leading cellular network operators, which now has more
than 5 million subscribers in South Africa, Nigeria, Cameroon, Uganda,
Rwanda, and Swaziland.
In February 2001, MTN Nigeria was awarded a 15-year GSM license through
an open auction process and launched its service in August 2001. The company
now provides coverage to 56 cities and over 1,000 villages and communities
spanning all of Nigeria’s six geopolitical regions. Owing to robust demand
for telecommunication services, MTN Nigeria achieved a total of more than
one million subscribers within less than two years. For more details on
IFC’s $100 million investment in the $395 million financing package to
MTN Nigeria see:
(IFC
Invests $100 Million in Nigerian Cellular Operator)
IFC’s strategic priorities in Nigeria include assisting small businesses
by providing technical assistance and financing; assisting the non-oil
sector, especially in financial restructuring and expanding non-traditional
exports, enhancing the domestic financial sector by providing resources
to commercial banks for medium-term lending; introducing new financial
products to enhance the development of local capital markets; and promoting
privatization and private investments in infrastructure services. Since
its first investment in 1956, IFC has committed financing to projects in
Nigeria amounting to $181 million as of FY 2003 – the largest country
portfolio in Africa.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.
