[Etisalat]–The Nigerian arm of Abu Dhabi telecom group Etisalat met lenders in London yesterday for talks on restructuring a $1.2 billion debt, Access Bank CEO Herbert Wigwe has revealed.
Wigwe said the banks needed to verify all the debts on Etisalat’s books, especially those to trade creditors such as IHS, which has said Etisalat owe it a payment of $8.5 million for more than 120 days since Dec. 31.
Access, one of the lenders in that consortium, is owed N40 billion ($131 million) by Etisalat Nigeria and more by its contractors, although Wigwe declined to specify how much.
“They are in London having a meeting as we speak. In the course of next week we would get clearer visibility on how to go about (the debt restructuring),” Reuters quoted Wigwe to have told analysts during a conference call to discuss the loan as part of its first-quarter results.
Another lender, First Bank, confirmed that there was a meeting in London and said it was positive that the loan would be restructured as guided by the regulator and repaid.
First Bank said that its exposure to Etisalat was about 1.25 per cent of its N2.1 trillion ($7 billion) loan book and that it could write it off if necessary.
A source said Etisalat had asked lenders to convert the dollar portions of its loans into naira to help it overcome the shortage of hard currency on the interbank market but that lenders were opposed to this idea. Wigwe said several options were being considered.
“We have done some financial restructuring which we have not closed on. We are hoping to get an agreement with everybody,” Wigwe said.
Etisalat Nigeria signed the $1.2 billion medium-term facility with 13 local banks in 2013 to refinance a $650 million loan and fund the modernisation of its network, but is now struggling to repay the debt.
A number of firms invested aggressively in the West African nation in the era of high oil prices but are struggling to repay loans or keep operating as the oil producer suffers from a slump in global crude prices that has hammered its revenues, its currency and dollars reserves.
Nigerian dollar liquidity has been improving recently, with the central bank intervening in the interbank market since February.Please Follow Us @ThePageNg