May 29, 2022

SB-Accounting

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9Mobile Loan: Zenith bank write off 30 percent debts

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9Mobile $1.2 billion loan debt has been the talk of the town for a while now. It was reported that the former Etisalat (now 9Mobile) get this loan from the consortium of 13 local banks in Nigeria. And offcourse, it seems that Zenith bank provided the highest loan set for the techco.

As was mentioned in here, the former Etisalat might have owed Zenith bank the sum of $262 million and N80 billion. However, the bank in a conference call has offered to write-off 30 percent of the debt.

Reuters reported the CEO of the bank Peter Amangbo saying this in a conference call:
“We have taken about 30 percent … as a provision which we believe is very prudent as the company is undergoing restructuring … to prepare for a new investor.”
BUA Group, Virgin Mobile, Vodacom among others are the investors willing to takeover 9Mobile. While cities bank is the advisor to the deal. Certainly, the 13 creditors will only accept an investor that provide favourable and well working terms in the loan repayment process.

9Mobile remain number four in the telecommunications industry. Its total internet subscribers for June as reported by Nigeria Communication Commission was 12,549,596.

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