According to sources well acquainted to the Ivorian banking world, MTN Cote d’Ivoire, subsidiary of the South African telecom giant is finalising a FCFA130 billion syndicated loan. The transaction was launched in March 2016, with local subsidiaries of Ecobank and Standard Chartered Bank leading it.

The loan could have an interest rate of about 6% and mature over 7 years. At the end of 2015, cash position of MTN Cote d’Ivoire was FCFA16.8 billion, for a total debt of FCFA108.67 billion, thus a net debt close to 92 billion CFA Francs, the activity report of the period shows.

In 2015, MTN Cote d’Ivoire also borrowed a total of FCFA68.8 billion in short-term loans, under non-disclosed conditions. The new loan should thus allow the company to plug its debt and finalise payment for the renewal of its licence.

It is not the first time that MTN Cote d’Ivoire takes a syndicated loan from local banks to mobilize resources. Truly, in 2009, the firm borrowed $150 million with a maturity period of 5 years. The transaction was coordinated by local subsidiary of Cti Bank, and had as arrangers and leaders Société Générale and Standard Chartered Bank.

Idriss Linge