Standard Bank Limited which has just concluded its final merger process with IBTC Chartered Bank Plc, has listed the benefit of the $2 billion loan syndicated for MTN Nigeria, a telecoms company.

In an exclusive interview with The Guardian, the Director, Telecoms Finance Africa of Standard Bank, Heloise Smith said it would affect positively the bottom-line of the newly merged banks and other local banks, which participated in the financing of the syndicated loan. The loan was syndicated by 14 local banks and nine international banks, and the international tranche was syndicated by Standard Bank.

According to Smith, the fresh fund will positively affect the bottom-line of the services of MTN, as it would help to expand the network and reduce congestion on the network. Besides, she noted that the syndicating banks now have tangible assets for the loans given, and it is a way of pumping more money into the economy.

Also, she noted that other companies operating in the country especially in the real sector and the service sector can now be sure that they can raise enough funds, no matter how big for development and expansion projects. She said: "It is a lesson to the other local and international companies that they can raise funds from Nigerian banks. It is a little expensive to borrow locally, but it is less stressful when compared with the hurdles involved in foreign exchange transactions."

She continued: "The effect on the two merging banks is having a larger presence in the Nigeria market. We are bringing expatriate and we are here to complement the work of IBTC. Certainly, it will have effect on the bottom-line of the banks' merger. It will enhance the profitability of the banks.

On the benefit of the funds to MTN, she said: "The funds raised for MTN would be used to finance existing indebtedness and expansion congestion and enhance further expansion. The banks now have $1.6 billion asset and it is pumping money to the economy.