The Nigerian unit of Africa’s giant telecom company, MTN is borrowing plenty money from Nigerian banks.

On Wednesday, MTN Nigeria signed a 7-year 200-billion-naira medium-term loan facility with a consortium of 12 banks, with FBN Quest acting as the facility agent.

So, what is MTN going to do with the money?

According to the company, it wants to paint Nigerian villages yellow, by rolling out infrastructure and extending its reach to rural communities.

Also Read: MTN Is Going Public In Ghana Before Nigeria

MTN said the facility is structured with a two-year moratorium and a repayment plan of five years.

The banks are Citibank Nigeria Limited, Diamond Bank Plc, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria, First City Monument Bank Plc and FSDH Merchant Bank Limited.

Others are Rand Merchant Bank Nigeria Limited, Standard Chartered Bank Plc, Stanbic IBTC Plc, United Bank for Africa and Union Bank of Nigeria Plc.

Speaking at the signing ceremony in the presence of key partners in Lagos, the Chairman, MTN Nigeria, Pascal Dozie, said that the partnership with banks would have a lot of influence on its operations, saying that the funds would be used to introduce more Nigerians to the Internet.

Dozie, who was represented by a director in the company, Gbenga Oyebode, said despite the pressure that Nigerian banks were subjected to, they continue to support MTN’s strive to grow and expand its operations.

The Chief Executive Officer, MTN Nigeria, Ferdi Moolman, expressed enthusiasm at the completion of the agreement, saying it showed MTN’s commitment to, and confidence in Nigeria.

But MTN was smart not to borrow in dollars. The facility is naira-denominated.

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