Table of Contents
Key Points
- MTN Uganda secures Ush370 billion ($100 million) loan, one of Uganda's largest local currency debt transactions.
- The syndicated debt facility was 1.6 times oversubscribed, reflecting lender confidence in MTN Uganda’s long-term growth strategy.
- The loan proceeds will support network expansion, digital inclusion, and MTN Uganda’s leadership in Uganda’s telecom market.
MTN Uganda, the Kampala-based telecom operator partly owned by Ugandan tycoon Charles Mbire, has raised Ush370 billion ($100 million) in one of the country’s largest local currency debt deals. The financing, arranged by a syndicate of five banks, demonstrates MTN Uganda’s strong financial position and commitment to advancing digital and financial inclusion.
MTN Uganda leverages debt for growth
The syndicated debt facility was 1.6 times oversubscribed, reflecting lender confidence in MTN Uganda’s long-term growth strategy. Stanbic Bank Uganda, part of Standard Bank Group, led the deal as Global Coordinator, Mandated Lead Arranger (MLA), and Bookrunner. Other participants included Absa Bank, Citibank Uganda, and Standard Chartered Bank as co-MLAs, with Centenary Rural Development Bank as the arranger.
The loan proceeds will support network expansion and other corporate purposes. MTN Uganda CFO Andrew Bugembe said, “This funding highlights our competitive strength and reflects growing local demand for corporate debt.” He added that the company’s leverage remains well below the industry average of 1.5x.
MTN Uganda sees 19.6% revenue growth
As a subsidiary of MTN Group, Africa’s leading telecom provider, MTN Uganda serves approximately 21.6 million subscribers, holding a substantial share of Uganda’s mobile market. MTN Group owns 76 percent of the company, while Charles Mbire holds a 4 percent stake, reinforcing his position as the wealthiest investor on the Uganda Securities Exchange.
Under Mbire’s leadership, MTN Uganda reported a 19.6 percent revenue increase for the first nine months of 2024, reaching Ush2.33 trillion ($634 million). This growth was fueled by strong performances in the data and fintech segments.
Its recent strategic initiatives, such as enhanced WakaNet pricing and speed improvements, are aligned with MTN’s “Ambition 2025” strategy to expand digital access across Uganda. This new loan will help solidify MTN Uganda’s market leadership and support the country's ongoing digital transformation, positioning the company for continued growth in the coming years.
