In what is seen as a bold financial move , the communications giant, MTN, has scooped up a large chunk of the nation’s liquidity – a whopping N 220 billion loan from 10 Nigerian banks.
There is a 2 year moratorium followed by a 5 year repayment obligation.
Following its recent payment of half of a hefty regulatory body penalty, confidence in MTN’s financial standing is high and the banks were eager to furnish the large loan.
MTN’ should soon be awash in liquidity- although its enthusiasm for a listing in the Nigerian Stock Exchange has dimmed somewhat, a development blamed on ‘unfavourable market conditions’.
The IPO was designed to help restructure debts and fund local investments in Nigeria with the local currency.
In the weeks ahead, it should be interesting to watch developments in MTN.