By Adriano Marchese
MTN Group Ltd. said Thursday that it has amended a service agreement with IHS Holding Ltd. in Nigeria.
The South Africa-based telecommunications company said the agreement is between MTN Nigeria Communications PLC and Global Independent Connect Ltd., INT Towers Ltd., IHS (Nigeria) Ltd. and IHS Towers NG Ltd., the affiliates of IHS Holding Ltd.
Together, they have reached an agreement to expand the scope of their current service agreement, and amend the currency conversion provision for tower services, it said.
The companies have agreed to move the reference rates for conversions to Naira from the Central Bank of Nigeria's official rate to the Nigerian Autonomous Foreign Exchange Rate.
It noted that the change in the reference rate will reduce its earnings before interest, taxes, depreciation and amortization margin in 2020 by around 0.4 percentage points.
However, this will be offset over time by improved pricing and increased focus on rural connectivity, it said.
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