Etisalat yet to agree debt deal with lenders

 

ETISALAT Nigeria is yet to agree a deal on restructuring a $1.2 billion loan with Guaranty Trust Bank, Access Bank and Zenith Bank after it missed a payment.
Etisalat Nigeria told Reuters last month that it was in talks with lenders to restructure the loan.
The source, who is not authorised to speak to media, said that Etisalat and the group of 13 Nigerian lenders were yet to agree on a debt restructuring proposal.
The source was speaking on the sidelines of Etisalat’s annual general meeting in Abu Dhabi on Sunday, where Chief Executive Saleh Al Abdooli declined to comment on the debt talks when asked by Reuters.
Sources have said that Etisalat would consider selling its stake in the Nigerian entity after the debt deal is agreed.
Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank Plc had in early March moved to take over Etisalat Nigeria over $1.72 billion debts.
The Central Bank of Nigeria and the Nigerian Communications Commission stoped the banks from taking over mobile telecoms firm, Etisalat Nigeria over loan crisis.
After a meeting between the Executive Vice Chairman of NCC, Umar Danbatta, and the Central Bank of Nigeria Governor, Godwin Emefiele, both men resolved to intervene in the loan crisis, after the banks threatened to take over the operations of the telecoms firm.
The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.
However, following the failure of the company to meet the debt servicing schedule agreed since 2016, the three Nigerian banks, prodded by their foreign partners, reported Etisalat to the NCC, threatening to take over the company.
Etisalat blamed its inability to fulfil its obligations to the banks on the current economic recession in Nigeria, sources said, adding that the NCC had intervened with a plea to the banks to relax their tough stance on the issue.