MTN Ghana has raised $300-million in medium-term funding facilities in syndicated loan to expand and improve its network.

The amount raised include a local component of GH¢410 million term funding, making this the largest local currency deal in the country’s history.

The remaining $60 million was taken up by foreign banks.

Stanbic Bank Ghana and Standard Bank South Africa, both members of the Standard Bank group, led the syndication in which a total of 20 local and international financial institutions took part in the transaction.

The amount represents the largest bank syndication in Ghana outside the annual Ghana Cocoa Board transaction.

“The success of this syndication opens a new era and speaks volumes of the banking industry in the country,” Alhassan Andani, Managing Director of Stanbic Ghana said at the signing ceremony in Accra on Wednesday.

“MTN has been a business leader over the years and we at Stanbic Bank are delighted to be playing a key role in mobilising these funds. This landmark transaction is a testament to our collective drive to support the Ghanaian economy. It will create jobs and give hope to our people,” Mr Andani said.

He said so high was the interest that the facility was oversubscribed both in the domestic and international markets.

The Ghanaian Cedi facilities and US Dollar facility were oversubscribed by 35 per cent and 92 per cent respectively – an indication of the financial strength and quality that local and foreign banks see in MTN Ghana and its operations.

Mr. Michael Ikpoki, Chief Executive Officer of MTN Ghana, said the amount raised was a demonstration of the confidence MTN had in the Ghanaian economy and its willingness to boost operations for increased customer satisfaction.

“This is a demonstration of how we see our business in Ghana. By looking within to raise this amount of money, we are indicating to the people of Ghana that we have absolute confidence in the economy and more importantly, the Ghana Cedi. This financing will help us take our business to the next level where the consumer will be the ultimate winner.”

He said the success was a signal of local bank maturity and the confidence in the Ghanaian economy, adding it was the beginning of great things to come.

The mandated lead arrangers for the syndication were Stanbic Bank Ghana Limited, Ghana Commercial Bank Limited, Ecobank Ghana Limited and Ecobank Capital, Standard Chartered Bank Ghana Limited and Barclays Bank of Ghana Limited.

Mandated Lead Arrangers in the USD Facility are: FirstRand Bank Limited acting through its Rand Merchant Bank Division and Export Development Canada.

Arrangers in the GHS Facilities are Access Bank (Ghana) Limited, SG-SSB Limited, Guaranty Trust Bank (Ghana) Limited, Cal Bank Limited, Zenith Bank (Ghana) Limited, United Bank for Africa (Ghana) Limited, Agricultural Development Bank Ghana, HFC Bank (Ghana) Limited, Fidelity Bank Limited and International Commercial Bank Limited.

Arrangers in the USD Facility are Ghana International Bank Plc and Nedbank Limited acting through its Corporate Banking Division.**