The Emerging Markets Telecommunication Services Ltd., operating as 9mobile, Nigeria’s fourth largest telecommunications company, has recently been approved for a $230 million loan by the Africa Finance Corporation (AFC)
AFC is a pan-African Multilateral Development Financial Institution established in 2007 to bridge Africa’s infrastructure investment gap, making investments across five key sectors of power, transport and logistics, natural resources, telecommunications and heavy industries.
9mobile made the approval of this loan known on Sunday in a released statement signed by Abdulrahman Ado, its executive director for regulatory and corporate affairs. According to Ado, the company received the loan approval from AFC on Friday, August 23.
“Africa Finance Corporation is pleased to inform the Emerging Markets Telecommunication Services that it has received full board approval to support the turnaround strategy of EMTS through $230m super-senior investment,” the financial institution said.
On the use of the loan, the company claims that the funds will be channelled towards innovative product development. The company claims that the loan facility will be divided into two sections, and will be used in repaying historic vendor obligations, finance costs and an internet reserve account and payment towards quick-win CapEx initiatives.
Speaking on this, Nashiru Bayero, the chairman of 9mobile’s board of directors, said, “We can only express gratitude to the AFC for approving this loan facility that would not only jhelp our business sustainability but also grow it to serve our teeming and loyal customers in Nigeria better.
We have completely reviewed our operational, regulatory, financial and technical architecture to ensure we deliver quality services and this facility would go a long way in giving best-in-class services to Nigerians. Our turnaround efforts are well and truly underway. We had promised when we took over that we would justify the confidence in our brand by making significant investments that will improve the value Nigerians get for using 9mobile.”
The Chief Financial Officer for 9mobile, Phillips Oki, also said that with the loan facility, 9mobile’s staff, vendors and subscribers can expect better days.