MTN injects $276 million into Ghana network
The Ghanaian subsidiary of South African mobile telecom group MTN has raised a syndicated loan worth $276 million at current exchange rates to finance network expansion, its director said on Wednesday.
MTN Ghana managing director Michael Ikpoki told Reuters that some 16 local banks, led by Stanbic Bank Ghana would provide 410 million cedis, in addition to $60 million from four foreign banks.
“It was a successful syndication – the first of its kind and proof that we do not have to be always looking outside to raise funds for investments,” Ikpoki said after a signing ceremony.
He said the cedi syndication was oversubscribed by 35 percent while the dollar counterpart was oversubscribed by more than 90 percent.
He said the funds would be used to upgrade the entire network to 3G and above.
MTN is the leading mobile network operator in Ghana with its subscriber base hitting 10 million in January.
Other networks include Britain’s Vodafone with about 4.2 million, Millicom International Cellular’s Tigo with nearly 4.1 million and India’s Bhati Airtel which has 2.5 million.
The rest are Sudan’s Sudatel Expresso with less than 200,000 subscribers and Nigeria’s Globacom which launched last month.
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