Those who expected that the meeting brokered by the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC), between telecoms operator- Etisalat Nigeria and 13 Nigerian banks tomorrow to amicably resolve issues around the $1.2bn loan overhang and prevent it from going into receivership may be disappointed after all.
Reuters reported on Thursday, quoting a source close to the meeting that the banks opposed suggestions that the US Dollar portion of the loan, about $235m be converted into naira. Instead, they plan to push for an equity injection as part of new terms after the mobile telecoms operator missed a payment.
At the current official rate, the loan, without interest, is estimated at N377 billion.
While Etisalat Nigeria owes Guaranty Trust Bank Plc N42 billion ($138 million) via a secured loan, while Fidelity Bank has exposure of around N17.5 billion ($56 million).
Reuters quoted Segun Agbaje, Chief Executive of GTBank as assuring the debt would be restructured.
Emirates Telecommunications Group (Etisalat) owns a 40% stake in its Nigerian affiliate, which accounted for around 3.7% of the group’s revenue in 2013. Etisalat Nigeria signed a $1.2 billion medium-term facility with 13 Nigerian banks in 2013, which it used to refinance an existing $650 million loan and fund a modernisation of its network.