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MTN Uganda Secures US$100million Syndicated Corporate Financing Credit Facility

Largest ever Ugandan Syndicated Corporate Finance and a world first in the syndicated loan market

Kampala, Uganda, October 19, 2009 – MTN Uganda today announced it has secured a US$100million Credit Facility from a Syndicate of Ugandan banks, in Uganda’s largest corporate financing arrangement ever and a world first in the syndicated financing market.

Announcing the transaction in Kampala this morning, MTN Uganda Chief Executive Officer, Themba Khumalo , said the facility, secured from eleven domestic and regional financial institutions, was, “a measure of the MTN Group’s commitment to Uganda.”

“The Corporate Financing facility is an indication of the confidence that banks have in our company. It also reflects the confidence that the financial sector has in the Ugandan economy and the prospects of the Ugandan telecommunication sector,” he said.

The US$100million Facility was arranged by Absa Capital, the investment banking division of Absa Bank Limited as sole Global-Coordinator, together with Barclays Bank of Uganda Limited, KCB Bank Uganda Limited, Standard Chartered Bank Uganda Limited and Stanbic Bank Uganda Limited as Mandated Lead Arrangers. The Facility was issued under an innovative structure similar to a Medium Term Notes Program used for the issuance of bond securities.

ABSA Capital Banker, Marouan Selmi, said the innovative structure of the Facility allows MTN Uganda to enter into USD 150 million equivalent of senior secured facilities on an ongoing basis, which is a first in the syndicated financing market worldwide.

This is the largest syndicated financing arrangement for a Ugandan corporate borrower to date. The facility was well subscribed by Bank of Africa Uganda Limited; Citibank Uganda Limited; DFCU Bank Limited; Ecobank Uganda Limited; Orient Bank Limited and United Bank for Africa Uganda Limited .

“The innovative structure addresses the need for strong local corporate credits in the Sub-Saharan Africa syndicated loan market to manage their funding needs and avoid frequent refinancing and associated costs as additional debt funding becomes available – allowing corporate issuers to maintain an optimal and efficient capital structure,” said MTN Uganda Chairman Charles Mbire.

MTN Uganda established the facility to finance its capital expenditure and working capital requirements and to further develop its banking relationships.

Finance Minister Syda Bbumba, in a speech read for her by Investments State Minister Aston Kajara, lauded MTN Uganda for “consistently delivering on its promises and making a positive, sustainable impact on the country’s development over the last eleven years”.

“The fact that we are now generating significant investor funds locally gives us hope. The local capacity exists for more investors to operate in Uganda, and we must thank those who have led the way,” Kajara said.

ABOUT THE MTN GROUP

Launched in 1994, the MTN Group is a multinational telecommunications group, operating in 21 countries in Africa, Asia and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: "MTN". As at 30 June 2009, MTN recorded 103,2 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. The MTN Group is a global sponsor of the 2010 FIFA World Cup South Africa™ and has exclusive mobile content rights for Africa and the Middle East. Visit www.mtn.com and www.mtnfootball.com .