Africa Finance Corporation grants $230 million loan facility to 9mobile

9mobile billboard used to illustrate the story
  • 9mobile has secured $230 million loan from AFC.
  • The company says the loan will be used to honor existing debts, finance its costs and invest in growth.
  • Since the beginning of 2019, 9mobile has lost more active internet subscribers, dipping to 9.03 million in June.

The Africa Finance Corporation (AFC) has approved a $230 million loan facility to Emerging Markets Telecommunication Services Limited (EMTS), trading as 9mobile to help it attain its long-term growth plans.

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.”

Purpose of this loan

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.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022