MTN Uganda (MTNU.UG), opens new tab, the east African country’s largest telecoms company, said on Tuesday it had secured a 370 billion shilling ($100 million) syndicated loan to help fund network expansion.
The firm, which boasts a mobile subscription of about 21 million people, is a local unit of South Africa’s MTN Group (MTNJ.J), opens new tab and competes chiefly with the local unit of India’s Bharti Airtel.
The loan, denominated in Uganda’s local currency, was secured from five banks, including local units of lending giants Standard Chartered, Citibank and Standard Bank, MTN Uganda said in a statement.
The debt facility was oversubscribed, “reflecting robust confidence from lenders in MTN-U (MTN-Uganda)’s long-term potential and focus on expanding its digital and financial services offerings,” the statement said.
In June, MTN Uganda sold shares left over from its 2021 Initial Public Offering (IPO) on the Ugandan stock exchange, leaving its parent owner controlling 76% of its shareholding.