With the signing of $650m loan with Nigerian banks, Etisalat just proved that Nigerian telecommunication industry is just starting. One way of knowing when an industry is healthy is evaluating the the loan structure in the industry. $650m is a big money especially for banks operating in Naira, but since the banks agreed to do this, it validates that the telecom market is huge and healthy. Simply, you must believe in Etisalat to compete very well in Nigeria before writing that cheque. With this, one can confirm there is a sustainable optimism and progress in the mobility and telecommunication industry in Nigeria.
Emerging Markets Telecommunications Services Ltd (EMTS), trading under the name of Etisalat Nigeria today 10 March 2011 in Lagos sealed agreements for a US$650 million loan split into 2 tranches: NGN 82.5 billion and US$100 million.The loan is from a consortium of eight leading Nigerian banks, namely; First Bank, Zenith Bank, Access Bank, Fidelity Bank, United Bank for Africa, Bank PHB, Guaranty Trust Bank and Oceanic Bank. The loan will support its expansion plan across the country.
Speaking about the loan signing, EMTS Chairman, Hakeem Belo-Osagie, noted that the loan represents a critical milestone in the growth of the company. “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, the regulatory agencies, who have together created an enabling environment that has made our success possible.”