Nigeria’s UBA makes provision on loans to 9mobile

Reuters

Nigeria’s United Bank for Africa (UBA) said it had made a provision on loans made to 9mobile, the mobile operator formerly known as Etisalat Nigeria.
The lender did not give details of the provision but said it had a $125 million exposure to 9mobile.
UBA said the exposure was secured, and part of a syndicated loan with 12 other banks extended to Etisalat Nigeria four years ago.
Nigerian banks have agreed an extension to a $1.2 billion loan made to 9mobile, pending the mobile operator finding new investors. However, some lenders outside the syndicated facility are making provisions.
“We have taken a general loan loss provision on Etisalat,” UBA Chief Executive Kennedy Uzoka told. “It’s instructive to note that Etisalat has reasonably turned around in terms of subscribers and revenues,” he said, adding that the bank was one of the lenders managing its receivables.
Zenith Bank said this month it had made a 30 percent provision on its loan to 9mobile, the country’s fourth-largest telecoms group.
Nigerian regulators stepped in Jul to save Etisalat Nigeria from collapse and prevent lenders placing it into receivership, prompting a board, management and name change.