MTN Uganda has secured UGX 370 billion (USD 100 Million) in debt financing in one of the largest local currency debt transactions in Uganda, which will be used by the telecom for general corporate purposes including the expansion and improvement of the network.
The syndicated debt facility from five local banks was 1.6x oversubscribed, in what the telecom described as, “reflecting robust confidence from lenders in MTN’s long-term potential and focus on expanding its digital and financial services offerings.”
The syndicated facility was led by Stanbic Bank Uganda Limited (part of the Standard Bank Group) as the Global Coordinator, Mandated Lead Arranger (MLA) and Bookrunner, partnering with Absa Bank, Citibank, Standard Chartered as co-MLAs, alongside Centenary Rural Development Bank as Arranger, to successfully execute the transaction.
Mr. Paul Muganwa, Head of Corporate and Investment Banking at Stanbic Bank Uganda, expressed his pride in delivering a ground-breaking debt package.
“MTN-U is at the forefront of adopting innovative financing solutions of scale,” Muganwa said.
Energy Ministry Orders UEDCL Board to Investigate Top Management Over Performance GapsMTN Uganda’s Chief Financial Officer, Mr. Andrew Bugembe noted that securing the substantial funding underscores the telecom’s competitive strength and reflects the growing appetite for premium corporate debt instruments within Uganda’s financial sector, adding that MTN continues to operate with a strong balance sheet.
“This facility will enable MTN Uganda to continue delivering on its growth ambitions as well as its work to advance digital and financial inclusion in Uganda,” he said.
As the leading cellular telecommunications provider in Uganda, MTN served approximately 21.6 million mobile subscribers as of September 2024. The company is 76% owned by the MTN Group, Africa’s leading telecommunications company with more than 280 million customers in 17 markets.
