Telecoms company Celtel Tanzania has signed a US$270mn syndicated loan financing via mandated lead arrangers and bookrunners Citi and Standard Bank.
Stanbic Bank Tazania and Citibank Tanzania were the local arrangers.
The transaction is notable as 40% of it was raised in local currency, the Tanzanian shilling.
The deal features three tranches, a US dollar tranche, a local currency term facility and the first ever revolving credit facility to be provided by a syndicate of local banks.
During syndication four banks joined as mandated lead arrangers: Standard Chartered Bank Tanzania, FMO, Development Bank of Southern Africa, DEG, and Proparco.
Lead arrangers are National Microfinance Bank and Export Development Canada, while Swedfund, Bank of Baroda, and Standard Finance joined as lead managers.
CRDB Bank is an arranger, with Tanzania Investment Bank and Tanzania Exim bank are managers.
This funding follows a successful 2007 for Celtel, with the company seeing a 65% growth in customer numbers to over 2.5mn.
Commenting on the company's development, Heiko Schlittke, Celtel Tanzania's finance director and acting managing director remarks: "We plan to further extend our coverage making it possible for more Tanzanians to have access to the latest mobile telecommunications technology.”
He adds: “This will also assist us at Celtel Tanzania in building on the rapid expansion we enjoyed in 2007, and to sustain our leadership in excellent network coverage while continuously introducing new products and services to make life better for all Tanzanians.”
In 2007 Celtel Tanzania revenues grew by 56% to US$265mn while net income rose by 96% to US$52mn.
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