A $230m loan approved for 9mobile by the African Finance Corporation (AFC) would provide the mobile network with the opportunity to return to winning ways, as efforts of the company’s new management towards a turn-around become promising.
The Board and Management of the Emerging Markets Telecommunications Services Limited (EMTS), doing business as 9mobile, announced over the weekend that it would deploy the loan facility to honour existing debts, finance its costs and invest in growth.
The loan will be divided into two tranches to repay historic vendor obligations, finance costs and an interest reserve account and payment towards quick-win capital expenditure initiatives, the company said in a press statement.
In addition, management of 9mobile promised to return the company to growth and profitability through cost efficiency, innovative product development and network efficiency.
9mobile, formerly called Etisalat Nigeria, is presently Nigeria’s fourth-largest carrier with a subscriber base of 15.97 million as at June, which is 9.19 percent share of the GSM market.
The operator, however, is seeking to regain lost grounds having held up to 14 percent of the market with a subscriber base of 20 million as of July 2017.
Under the weight of a $1.2 billion debt two years ago, 9mobile parted ways with its United Arab Emirate operator, Etisalat, which had to sell its 45 percent stake in the Nigerian business to open the way for new investors in the local mobile network company.
The mobile carrier had in 2013 obtained a 7-year US$1.2 billion syndicated facility from 13 lenders including Access, FCMB, Zenith, UBA and Union Bank, to refinance existing obligations and fund network expansion.
But luck ran out on the-then Etisalat Nigeria when economic slowdown and a currency devaluation, it said, crippled ability to honour the repayment scheme forcing lenders classified as non-performing in 2017.
The inability of 9mobile to reach a debt restructuring agreement with the lenders after missing the deadline for commencing repayment, resulted in the banks ordering the Telco’s shareholders to transfer ownership to a trustee, and a subsequent change in the company’s management.
Following the successful take-over by Teleology Nigeria Limited last year, Ado Bayero was appointed to lead 9mobile’s new board and tasked with the responsibility of piloting the Telco to greater heights.
The recently approved $230m lifeblood, 9mobile says, would its subscribers, staff and vendors switching on to better days. “We will reclaim every lost ground in the market in the coming months.” said Phillips Oki, 9mobile’s Chief Financial Officer, said.
SEGUN ADAMS
