MTN mulls share sale in Rwanda

MTN Group’s Rwanda unit is considering a share sale on the country’s stock exchange to help fund planned network upgrades.

The move would follow an initial public offering of MTN’s Ghanaian division earlier this year, pursued by Africa’s largest wireless carrier in exchange for new spectrum. MTN’s Nigeria business has pledged to sell shares in Lagos, while an IPO in Kampala is under review for Uganda.

“It is something we are actively considering,” MTN Rwanda chief financial officer Diatile Lily Zondo said in an interview in the capital, Kigali on Monday. Unlike in Nigeria, MTN’s biggest market, an IPO would not be as a result of regulatory pressure, she said.

MTN’s Rwanda unit is looking to secure a syndicated loan of about 50-billion francs (US$60-million) to upgrade its network, and is in talks with eight local lenders. The facility should be in place before the end of November, the CFO said.

The Johannesburg-based company had 3.6 million customers in the East African country as of the end of March, just 1.6% of the overall 221 million.  — Reported by Saul Butera, (c) 2018 Bloomberg LP