MTN Uganda reports securing a syndicated loan of $100 million

The largest telecom provider in east Africa, MTN Uganda (MTNU.UG), announced on Tuesday that it has obtained a syndicated loan of 370 billion shillings ($100 million) to assist in financing network growth.

The company, which has roughly 21 million mobile subscribers, is a local division of the MTN Group (MTNJ.J) in South Africa. It launches a new tab and primarily faces off against the local division of Bharti Airtel in India.

According to a statement from MTN Uganda, five banks, including local branches of the massive lending companies Standard Chartered, Citibank, and Standard Bank, provided the loan, which was valued in Ugandan local currency.

According to the statement, the oversubscription of the financing facility revealed “strong confidence from lenders in MTN-U (MTN-Uganda)’s long-term potential and focus on expanding its digital and financial services offerings.”

After selling off shares from its 2021 IPO on the Ugandan stock exchange in June, MTN Uganda’s parent company now owns 76% of the company’s shares.

($1 is equivalent to 3,674,000 Ugandan shillings).