Etisalat expected to end feuds with banks over $1.2 billion debt this week

Etisalat Nigeria has said it is expecting the closure of discussion about the resolution of issues around its $1.2billion indebtedness to a consortium of local lenders this week.

Its Vice President, Regulatory & Corporate Affairs, Ibrahim Dikko, said the telco was aware of news reports that Mubadala Development Company, the majority shareholder of the company, is exiting the business.

He said while it was premature at this stage of the discussions to affirm that this is the conclusive option, Etisalat Nigeria considers it pertinent to state that parties to the negotiation are considering a number of options and discussions are at an advanced stage regarding the syndicated loan agreement with the banks.

Dikko said: “It will therefore be presumptive and in bad faith to begin to predict the outcome. Discussions have so far been quite collaborative and we expect to reach a final resolution next week, by which time we will be in the position to make a definitive announcement.

“Etisalat Nigeria can confirm that negotiations with the consortium of banks regarding the syndicated loan agreement signed in 2013 have reached an advanced stage. As noted in an earlier statement, we are considering a number of options and are not taking anything off the table at this time.

“Etisalat remains a viable business, having recorded its best financial year in 2016. Parties are keen to ensure that the ongoing discussions and eventual outcome do not affect the day to day operations of the business whether now or after the announcement of our agreement. All parties have continually demonstrated an interest in the continued operations of Etisalat as a business as it remains the backbone of millions of small business owners; multinationals, government and, indeed, Nigerian subscribers in general.

“Etisalat therefore appeals to its partners in the media to exercise some restraint in speculating the outcome of the ongoing discussions being held behind closed doors. We appreciate the tremendous support we have received since inception and count on the continued support owf our media partners as we navigate this path and emerge as a stronger business.”

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