Operator MTN Uganda says it has secured UGX370 billion (about US$100 million) in committed debt financing from five local banks.
This debt financing is described as one of the largest local currency debt transactions in Uganda. The syndicated debt facility from five local banks was 1.6x oversubscribed.
MTN Uganda says this deal reflects robust confidence from lenders in the operator’s long-term potential and focus on expanding its digital and financial services offerings. The financing will be used by MTN Uganda for general corporate purposes including the expansion and improvement of the network.
The arrangement was led by Stanbic Bank Uganda, partnering with Absa Bank Uganda, Citibank Uganda, Standard Chartered Bank Uganda and Centenary Rural Development Bank.
MTN Uganda’s Chief Financial Officer, Andrew Bugembe, says: “MTN Uganda’s achievement in securing this substantial funding underscores our competitive strength and reflects the growing appetite for premium corporate debt instruments within Uganda’s financial sector.” MTN Uganda continues to operate with a strong balance sheet, he points out.
MTN Uganda serves approximately 21.6 million mobile subscribers as of September 2024. Its main competitor in the market is Airtel Uganda with 15.6 million customers by 30 June 2024. The company is 76% owned by the MTN Group, Africa’s leading telecommunications company with more than 280 million customers in 17 markets.
Reuters notes that 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.
