Leading global law firm Baker & McKenzie has advised West Africa’s leading cellular telecommunications company, MTN Nigeria, on its largest financing to date.
The US$3 billion loan, which was secured from a consortium of seventeen Nigerian banks and five global financial institutions, is the latest in a series of financing for the company. It will enable the company to further expand, modernise and improve its network infrastructure.
The deal is Baker &McKenzie’s first mandate for MTN Nigeria.
London-based Baker & McKenzie partner Marc Fèvre, who led on the deal said, “The deal demonstrates Baker & McKenzie’s continuing track record in Africa, further bolstered by our recent office openings in Johannesburg and Casablanca, as well as our commitment to working with Africa’s leading corporations. This transaction also shows our capability in advising on major financing projects involving Export Credit Agencies (ECAs).”
The financing deal was signed on 23 April 2013 and closed on 13 May 2013 under all the facilities other than the Chinese export credit facilities, which are scheduled to close in early June 2013. The funding ratio is split approximately between 70% denominated in Naira from the consortium of Nigerian financial institutions and 30% in US Dollars from international institutions, including export credit backed facilities from Europe and China. The repayment term for the financing deal is seven years.
The Naira denominated facilities were provided by a consortium of Nigerian banks consisting of Access Bank, Citibank Nigeria, Diamond Bank, Ecobank Nigeria, Fidelity Bank, First Bank of Nigeria, First City Monument Bank, FSDH Merchant Bank, Guaranty Trust Bank, Keystone Bank, Mainsteam Bank, Rand Merchant Bank Nigeria, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, Union Bank of Nigeria, United Bank for Africa and Zenith Bank. The international lenders included a commercial facility provided by Export Development Canada, FirstRand Bank Limited and Nedbank, a SEK and EKN-backed facilities provided by Germany’s KfW and Sinosure-backed facilities provided by Industrial and Commercial Bank of China, China Development Bank and China Construction Bank.
The team also included London-based Finance partner Frances Okosi, senior associate James Keeping and associate Luka Lightfoot. Beijing-based partner Simon Leung also advised. Local counsel advice in Nigeria was provided by Aluko & Oyebode.
MTN Nigeria is part of the MTN Group, Africa’s leading cellular telecommunications company. MTN Nigeria has the largest subscriber base (50 million) in the West African country and contributes the single greatest proportion of revenue of the entire MTN Group.
