MTN Rwanda signs deal for 50bn franc loan for network upgrade

MTN Rwanda, the biggest telecoms operator in the East African nation, has signed a 50 billion franc ($56.20 million) loan with eight local banks. Photo: Simphiwe Mbokazi/ANA

MTN Rwanda, the biggest telecoms operator in the East African nation, has signed a 50 billion franc ($56.20 million) loan with eight local banks. Photo: Simphiwe Mbokazi/ANA

Published Nov 29, 2018

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INTERNATIONAL - MTN Rwanda, the biggest telecoms operator in the East African nation, has signed a 50 billion franc ($56.20 million) loan with eight local banks, whose proceeds will be used to expand and modernise its network.

The company, which had close to 4.5 million subscribers in September, is owned by South Africa’s MTN Group and Crystal Telecom, a local company under the ruling party’s investment branch, Crystal Ventures.

The loan, with a seven-year term, was provided by a syndicate of eight banks comprising Ecobank Rwanda, Cogebanque, BPR Atlas Mara, I&M Bank, Bank of Kigali, KCB Bank, Equity Bank and GT Trust Bank, the bank said in a statement on Wednesday.

Diatile Lily Zondo told Reuters that the company had no plans for an initial public offering, disputing a report by news agency Bloomberg earlier in the week.

Elsewhere in Africa, more specifically Nigeria, MTN met with the Central Bank of Nigeria (CBN) in an effort to end troubles in the country that have wiped off billions in value. The group announced that the deal would be taking place at the AfricaCom gathering, which brought together the telecoms industry’s head honchos. 

REUTERS 

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