In a letter addressed to the board of 9mobile, the financial institution said, “Africa Finance Corporation is pleased to inform Emerging Markets Telecommunication Services that it has received full Board approval to support the turnaround strategy of EMTS through a US$230 million super senior debt investment.”
Commenting on the approval, the Board Chairman, Nasiru Ado Bayero, expressed happiness that EMTS’ effort to recover previously ceded ground through an innovative growth plan is being supported by a prestigious Pan-African financial institution as the AFC.
“We can only express gratitude to the AFC for approving this loan facility that would not only help 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,” he said.
Also commenting on the transaction, 9mobile’s Chief Financial Officer, Phillips Oki, said the company "will reclaim every lost ground in the market in the coming months.”
The facility divided into two tranches would, among others, be used to repay historic vendor obligations, finance costs, and an interest reserve account and payment towards quick win Capex initiatives.
9mobile said the loan will be used to honor existing debts, finance its costs and invest in growth.
What does this mean for the company
Since the beginning of 2019, 9mobile has lost more active internet subscribers, dipping to 9.03 million in June, according to NCC’s latest data.
This new fund will help the country’s fourth-biggest telecoms operator improve on its infrastructure and introduce innovative growth plan.