IFC’s International Bank Lending Catalytic Role in $395 Million Syndicated Loan to MTN Nigeria Scoops “Africa Telecoms Deal of the Year” Award

In Washington: 
Ahmed Badawi-Malik 
Phone: +1 (202) 458-7148 
Fax: � � �+1 (202) 974-4384 
Email: Abadawi@ifc.org




WASHINGTON, D.C./LONDON, March 5, 2004 �€” The International Finance 
Corporation, the private sector arm of the World Bank Group, received the �
€œAfrica Telecoms Deal of the Year�€� award at Euromoney�€™s Project Finance 
Magazine 4th Annual Awards Dinner at the Millennium Hotel, London, for its key 
role in a $395 million syndicated loan to MTN Nigeria Communications Limited 
(MTNN), the country�€™s leading operator, announced on November, 21, 2003; IFC 
contributed $100 million to the financing package �€“ one of its largest ever 
investments in the telecommunications sector, and the corporation�€™s second 
largest investment in Africa so far. 

The Project Finance (http://www.projectfinancemagazine.com) award for IFC�€™s �
€“ international and local bank lending - catalyzing role in the MTNN financing 
package represents a dual accolade to its Sub-Saharan Africa and Global 
Information & Communications Technologies departments. Project Finance said the 
award reflected that �€œThe IFC part of the loan helped encourage other 
international lenders to provide the largest ever local currency debt facility 
Nigeria has seen �€“ 10 times as big as its closest comparable deal.�€� 
�Project Finance added, �€œAnother key factor that swayed the Africa Telecoms 
Deal of the Year award to IFC is that its pivotal presence in the loan helped 
deepen local capital markets by catalyzing the largest non-natural resource 
financing ever seen in Africa.�€� 

Haydee Celaya, IFC Director for Africa, noted that the Project Finance award 
for IFC�€™s catalytic role in the financing package, which MTN is using to 
expand and improve its network in Nigeria, was �€œall the more satisfying 
because the MTNN transaction fitted so well with IFC�€™s strategy for Nigeria 
anyway, namely, it facilitated private participation in key areas of 
infrastructure, spurred financial sector deepening, and has supported the 
government�€™s reform of the telecommunications sector.�€� 

Note to Editors: Aside from IFC senior �€˜A�€™ loans, the $395 million 
financing package to MTNN comprised a domestic currency syndicate of Nigerian 
banks, and parallel loans from Standard Chartered Merchant Bank, DEG and FMO. 
Citigroup (London) and Standard Bank (London) arranged the total financing 
package to support MTN Nigeria�€™s $1.3 billion capital expenditure program. 
MTN Nigeria is part of MTN Group (www.mtngroup.com), one of Africa�€™s leading 
cellular network operators, which now has more than 5 million subscribers in 
South Africa, Nigeria, Cameroon, Uganda, Rwanda, and Swaziland. 

In February 2001, MTN Nigeria was awarded a 15-year GSM license through an open 
auction process and launched its service in August 2001. The company now 
provides coverage to 56 cities and over 1,000 villages and communities spanning 
all of Nigeria�€™s six geopolitical regions. Owing to robust demand for 
telecommunication services, MTN Nigeria achieved a total of more than one 
million subscribers within less than two years. For more details on IFC�€™s 
$100 million investment in the $395 million financing package to MTN Nigeria 
see: 
(IFC Invests $100 Million in Nigerian Cellular Operator) 

IFC�€™s strategic priorities in Nigeria include assisting small businesses by 
providing technical assistance and financing; assisting the non-oil sector, 
especially in financial restructuring and expanding non-traditional exports, 
enhancing the domestic financial sector by providing resources to commercial 
banks for medium-term lending; introducing new financial products to enhance 
the development of local capital markets; and promoting privatization and 
private investments in infrastructure services. Since its first investment in 
1956, IFC has committed financing to projects in Nigeria amounting to $181 
million as of FY 2003 �€“ the largest country portfolio in Africa. 

The mission of IFC (www.ifc.org) is to promote sustainable private sector 
investment in developing countries, helping to reduce poverty and improve 
people�€™s lives. IFC finances private sector investments in the developing 
world, mobilizes capital in the international financial markets, helps clients 
improve social and environmental sustainability, and provides technical 
assistance and advice to governments and businesses. From its founding in 1956 
through FY03, IFC has committed more than $37 billion of its own funds and 
arranged $22 billion in syndications for 2,990 companies in 140 developing 
countries. IFC�€™s worldwide committed portfolio as of FY03 was $16.8 billion 
for its own account and $6.6 billion held for participants in loan 
syndications.