MTN Uganda Limited (MTN-U) has obtained committed debt funding from five local banks totalling Ush 370 billion (USD 100 million) in one of the biggest local currency debt transactions in Uganda, marking a significant milestone for the country’s telecom industry.
The announcement, made in a statement on Tuesday, highlighted the success of the syndicated financing facility, which was 1.6 times oversubscribed. This strong demand reflects the confidence lenders have in MTN Uganda’s long-term prospects and its commitment to growing its financial services and digital capabilities.
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MTN-U plans to use it for general business objectives, such as network growth and enhancement.
Stanbic Bank Uganda Limited, a member of the Standard Bank Group, led the arrangement as the Global Coordinator, Mandated Lead Arranger (MLA), and Bookrunner. Absa Bank Uganda Limited, Citibank Uganda Limited, and Standard Chartered Bank Uganda Limited served as co-MLAs, and Centenary Rural Development Bank served as the arranger. Together, they successfully completed this historic transaction.
MTN-U, Stanbic Bank expresses their enthusiasm about the development
Stanbic Bank Uganda’s Head of CIB, Paul Muganwa, said he was proud to have worked with MTN-U and major relationship banks to provide a revolutionary debt package.
He noted, “MTN-U is at the forefront of adopting innovative financing solutions of scale.”
MTN-U’s Chief Financial Officer, Andrew Bugembe, added “MTN-U’s achievement in securing this substantial funding underscores our competitive strength and reflects the growing appetite for premium corporate debt instruments within Uganda’s financial sector, noting MTN-U continues to operate with a strong balance sheet, maintaining leverage well below the industry’s average of 1.5x.”
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MTN-U expansion goals
MTN-U will be able to carry out its expansion goals and efforts to promote financial and digital inclusivity in Uganda with the help of this facility.
As of September 2024, MTN-U, Uganda’s top cellular telecommunications company, serves around 21.6 million mobile users.
The MTN Group, Africa’s top telecom provider with over 280 million consumers across 17 countries, owns 76 percent of the company shares.