Mobile Telecoms operator MTN Ghana has explained its decision to raise 410 Million Ghana Cedis through a consortium of local banks as an indicator that Ghana's banking sector is well established. The telecoms giant yesterday signed a historic agreement with 16 local banks to raise 410 Million Ghana Cedis to undertake capital expansion to improve network quality. The arrangement will further see 4 foreign banks raising 60 million Dollars for MTN. The MTN Loan Syndication is believed to be the biggest local currency deal ever undertaken in the country. In an interview with Joy Business after the signing ceremony,Chief Executive Officer of MTN Ghana,Mike Ikpoki said the action would help grow the Ghanaian economy. “16 local banks uniting to fund this facility is a novelty-its rare. Instead of funding the facility externally 100%, we rather decided that raising funding locally would plug into commitment to the Ghana market. We also envision that in so doing we have endorsed the local banking industry, highlighting our desire to grow the MTN Service and to continually invest in this market”…..Mr.Ikpoki observed. The 16 local banks involved in the MTN Loan syndication include Calbank,Fidelity,Access,Zenith,HFC,SGSSB,Ghana International Bank and GT Bank. Rand Merchant Bank,Ghana Commercial Bank,Nedbank Group,Standard Chartered Bank,Barclays and Ecobank are the lead managers of the syndication. Stanbic Bank Ghana together with its parent company the Standard Bank Group are the Co-coordinators of the loan syndication.Managing Director Alhassan Andani explained to Joy Business that they brought a lot of expertise to bear on the transaction. “You work with the borrower, to fashion out the kind of product they require, you take that to the lenders who are both local and international banks. That’s the first time you see 16 local banks sitting around a table in Ghana with 4 international banks signing a local facility. That speaks to the quality the Global Coordinator-Standard Bank and Stanbic Bank Ghana” the Stanbic Bank MD noted. He indicated “It speaks volumes of the views the multinationals are beginning to have about local banks. In the past MTN would have perhaps raised this money from abroad and not even given thought to the fact that there’s a local bank with the capacity to comprehend what their needs are, much more even have the financial muscle to meet those needs”