(formely M-Cell Limited) - Business Report 2003 - MTN Group

2003 2002
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20. BORROWINGS (continued)
SECURED (continued)
International (continued)
MTN Uganda (continued)
European Investment Bank
Loan of US$2,8 million (2002: – US$6,4 million) bearing interest at 7,5% per
annum and repayable semi-annually from February 2002 until August 2009. 22 36
Swedfund International
Subordinated loan of UGS 3 billion bearing no interest and repayable by
September 2007. The repayment value will be based on the equity and net
operating profit from the three years ending 31 March 2008. Lenders are
entitled to a remuneration fee pro rata to dividends declared to ordinary
shareholders. 10 13
Nordic Development Fund
Subordinated loan of UGS 3 billion bearing no interest and repayable
by September 2007. The repayment value will be based on the equity
and net operating profit for the three years ending 31 March 2008.
Lenders are entitled to a remuneration fee pro rata to dividends declared
to ordinary shareholders. 10 13
All of the above MTN Uganda loans participate in the inter-creditor security
package comprising of an assignment of the MTN Uganda telecom licence
providing security of US$12,7 million by means of a first fixed charge in favour
of the inter-creditor agent, Stanbic Uganda, over all property, plant and
equipment.
MTN Cameroon
International Amortising Senior Debt Facility (IASDF)
Facility of EURO 58,5 million bearing interest at EURIBOR plus 2,25% per annum
(effective rate of 4,4% per annum), repayable bi-annually, starting 30 June 2003
and secured against the shares held by MTN Mauritius in MTN Cameroon and
a notarial bond over property, plant and equipment. 425 387
Domestic Amortising Senior Debts Facility (DASDF)
Facility of CFA23 billion bearing interest at Taux d’Interets de Appels D’Offres
(TIAO) plus 1,75% per annum (effective rate of 8,1% per annum) repayable
bi-annually, starting 30 June 2003 and secured against the shares held by
MTN Mauritius in MTN Cameroon and a notarial bond over property, plant and
equipment. A credit enhancement agreement was provided by MTN Holdings
which guarantees the obligations of MTN Cameroon under the facility in
certain circumstances. 72 84
MTN Nigeria
Overdraft facility, trade finance and commercial paper loan of NGN19 billion
bearing interest at a variable rate benchmarked against the average 30-day
NIBOR (effective rate of 18,8% per annum), repayable by December 2003.
The loan is secured against the shares held by MTN Mauritius in MTN Nigeria.
In addition, through a negative pledge, MTN Nigeria is restricted from
disposing of certain assets outside the ordinary course of business. 1 188 —
MTN Rwanda
Syndicated loan from four local banks totalling RWF2,9 billion, bearing interest
at a rate of 16% per annum, and repayable over 39 months effective from
April 2003. The loan is secured by a floating charge on MTN Rwanda’s
property, plant and equipment and by subordination of shareholders’ loan. 13 —
Total secured borrowings 2 089 591
Total borrowings 4 835 5 776
MTN BUSINESS REPORT 2003
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