We are discussing with them, says telecom firm
If current negotiations with its banks fail, the assets of Nigeria’s fourth largest telecommunications provider, Etisalat, may be acquired by its creditors.
In 2013, Etisalat Nigeria was said to have secured a total of $1.7 billion medium term syndicated loan facility with a consortium of Nigerian banks. The facility includes both naira and US dollar tranches from a consortium of Nigerian banks: Zenith Bank, Guaranty Trust Bank, First Bank, United Bank of Africa, Fidelity Bank, Access Bank, Ecobank, Keystone Bank, First City Monument Bank, FSDH Merchant Bank, Mainstreet Bank, Stanbic IBTC Bank and Union Bank.
The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.
However, current economic challenges in the country may have pushed Etisalat into a tight corner with its creditors, as it is unable to pay off its debts.
In the event that Etisalat’s assets are taken over by the banks, the about 21 million of its subscribers are at the risk of experiencing issues in the quality of services and possibly at higher costs. There could also be loss of jobs on account of employment rationing, and above all shutting down of their operations in Nigeria.
In keeping with customer confidentiality, all the banks contacted by The Guardian kept sealed lips on the matter, except, GT Bank.
GT Bank admitted in an email response that the lender has an ongoing commercial relationship with Etisalat, but denied knowledge of alleged takeover of the company’s assets.
But Etisalat, admitting to the debts, said it is discussing with its creditors with a view to amicable resolutions, even as industry regulator, Nigerian Communication Commission (NCC), said it is unaware of the financial dispute.
Vice President, Regulatory & Corporate Affairs, Etisalat Nigeria, Ibrahim Dikko, said the firm is negotiating the loan.
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