Etisalat ‘still in talks’ with lending banks over $1.2 billion loan

Mobile telecoms operator, Etisalat Nigeria, on Monday said it was still in talks with its lenders over a $1.2 billion (about N541.8 billion) loan.

The company said in a statement that it would continue to focus on providing uninterrupted services to its subscribers.

“Etisalat Nigeria confirms that it is still in discussions with its lenders regarding existing obligations under the syndicated loan agreement signed in 2013 and wishes to added that it has not received any formal communication from the lenders regarding the proposal,” the statement signed by the company’s management said.

Media reports emerged on Monday that the 13 banks being owed by the company had rejected an offer of five percent equity in lieu of the 2013 credit.

The reports came almost two months after Etisalat Nigeria got a much sought-after reprieve following a breakthrough in its negotiations with some Nigerian banks that threatened to take over its business.

“While we are aware of recent news reports stating that the offer has been rejected by the banks, we cannot confirm this as true as no formal communication has been received from the banks regarding the proposal,” the telecoms firm said.

“Etisalat has so far held robust discussions with lenders I’m good faith, and we hope that all areas of discord will be resolved.

“Indeed the current economic challenges have occasioned untold hardship on the telecom industry as a whole, thus requiring a major shift in position by all affected parties.”

The company added that it had continued to explore “all available options to pull through this phase” and would keep engaging relevant parties in order to secure a mutually agreeable outcome.

“Furthermore, we are not taking anything off the table at this time, and Etisalat assures all stakeholders that the ongoing discussions are not intended nor expected to impact negatively on the company’s ability to continue providing seamless communications services to our subscribers.”