MTN Uganda Secures $100 Million Loan for Network Expansion

MTN Uganda, a leading telecoms company, secured a 370 billion shilling loan for network expansion. The oversubscribed loan reflects lender confidence in MTN Uganda's growth prospects. The funds were sourced from banks like Standard Chartered and Citibank, as MTN focuses on digital and financial service expansion.

MTN Uganda, the largest telecommunications company in the East African country, announced on Tuesday that it has secured a 370 billion shilling ($100 million) syndicated loan aimed at supporting its network expansion initiatives. This expansion is crucial for the firm, which serves approximately 21 million mobile subscribers locally.

The loan was obtained from a consortium of five banks, including prominent financial institutions such as Standard Chartered, Citibank, and Standard Bank. MTN Uganda highlighted in a statement that the oversubscription of this debt facility illustrates strong lender confidence in MTN Uganda's long-term growth and strategic focus on enhancing its digital and financial services.

In a related development, MTN Uganda has successfully sold shares residual from its 2021 Initial Public Offering (IPO) on the Ugandan stock exchange, affirming the parent company MTN Group's control of 76% stake in the local unit. The current exchange rate stands at $1 equal to 3,674 Ugandan shillings.

(With inputs from agencies.)