Daily Independent Online.
*
Wednesday, June 30, 2004.
M-Tel signs N5b loan facility with UBA,
others
• MTN owes Customs N2b on import duty
By Tom Chiahemen
Senior
Correspondent, Abuja
Mobile
Telecommunications Limited (M-Tel) and a consortium of banks, led by the United
Bank for Africa (UBA), on Tuesday in Abuja signed an agreement for a N5 billion
bridge loan for the GSM operator.
The agreement, signed
at the Nicon Hilton Hotel, Abuja, represents the first tranche of a N15 billion
facility underwritten by a banking syndicate comprising UBA, Union Bank,
Guaranty Trust Bank, Standard Trust Bank, Prudent Bank and Zenith International
Bank.
M-Tel Managing
Director/Chief Executive Officer, Aad Loois, explained that the money is needed
to expand its GSM network and for strengthening operations to make M-Tel's
network one of the best in the world.
The company intends to
use the loan to settle on-shore payments required under its existing equipment
vendor contracts with Ericcson of Sweden, Motorola of the USA and ZTE of China
pursuant to the on-going capacity expansion projects of its GSM network by 1.2
million lines.
Besides, M-Tel has
earmarked funds for start-up expenditure relating to new lines planned for
introduction in 2005. Its network
currently runs at over 50 per cent capacity but its rapid growth nationally has
resulted in the need for it to install additional transmission capacity,
particularly in the North East and North West.
Loois promised that
the current network problems experienced in some parts of the country would
soon be solved.
Meanwhile, it emerged
on Tuesday that another major player in the GSM market, MTN, owes the Nigeria
Customs Service (NCS) N2 billion in import duty.
A source said in Abuja
that cargo belonging to MTN was seized by the NCS two weeks ago in Lagos
following delay in settling the bill.
It was learnt that the
scarcity of its recharge cards may be connected with the seizure.
MTN recently declared
a N26 billion profit for the first six months of 2004.
The source said MTN had been clearing its cargo without the
requisite payments and that such waiver resulted in the high debt profile.
