MTN Group raises $1.3 billion of loans

MTN Group, Africa’s largest mobile-phone operator by sales, said it entered three loan agreements, raising more than $1.3 billion as the company markets a potential bond according to a report by Bloomberg.

The company which is currently on a roadshow in the U.S. and U.K. this week to gauge investor appetite for the sale of debt securities is being provided with $1 billion and 4.8 billion rand ($332 million) from local and international banks and financial institutions,  it said in an e-mailed response to questions on Tuesday.

“These financing arrangements are in line with the MTN’s funding strategy, which aims to improve its debt maturity structure on an ongoing basis and maintain adequate bank facility headroom to support its credit rating. MTN’s funding strategy further aims to maintain a balance of operating currency and dollar-denominated debt”, the company said in the e-mail.

MTN’s move to attract funding comes after the company reported its first-ever half-year loss in August, partly caused by an agreement to settle a record 330 billion naira ($1 billion) fine in Nigeria.

Following the announcement, MTN shares jumped 2.2 percent to 121.49 rand as of 12:29 p.m. in Johannesburg on Wednesday for the biggest two-day advance since June 29 and valuing the company at 225 billion rand ($16 billion).

Source: Bloomberg

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