IHS Towers Announce Renewals and Extensions on all MTN Nigeria Tower Master Lease Agreements
IHS Towers, a leading global communications infrastructure provider, has announced the renewal and extension of all tower Master Lease Agreements (MLAs) with MTN Nigeria until December 2032. This agreement covers approximately 13,500 tenancy contracts, including the renewal of 1,430 tenancies out of the 2,500 that were due to expire in 2024 and 2025. The new terms include a more balanced split between local and foreign currency, as well as a new diesel-linked component to hedge against price fluctuations.
This renewal underscores the critical role of IHS Towers' infrastructure in enabling mobile connectivity for MTN Nigeria, which serves about 79 million subscribers. The agreement includes escalators linked to both US and Nigerian Consumer Price Indices, as well as a component indexed to diesel power costs. This marks the completion of all tower MLA renewals in Nigeria for IHS Towers, strengthening its partnership with MTN.
IHS Towers, un importante fornitore globale di infrastrutture per le comunicazioni, ha annunciato il rinnovo e l'estensione di tutti i contratti di locazione Master Lease Agreements (MLA) con MTN Nigeria fino a dicembre 2032. Questo accordo copre circa 13.500 contratti di locazione, inclusa la riconferma di 1.430 locazioni di quelle 2.500 in scadenza nel 2024 e 2025. I nuovi termini includono una ripartizione più equilibrata tra valuta locale e valuta straniera, oltre a un nuovo componente legato al diesel per proteggersi dalle fluttuazioni dei prezzi.
Questo rinnovo sottolinea il ruolo fondamentale delle infrastrutture di IHS Towers nel facilitare la connettività mobile per MTN Nigeria, che serve circa 79 milioni di abbonati. L'accordo include indicizzatori legati sia all'Indice dei Prezzi al Consumo statunitensi che a quello nigeriano, così come un componente indicizzato ai costi energetici del diesel. Questo segna il completamento di tutti i rinnovi degli MLA delle torri in Nigeria per IHS Towers, rafforzando la sua partnership con MTN.
IHS Towers, un proveedor global líder en infraestructura de comunicaciones, ha anunciado la renovación y extensión de todos los Contratos Master de Arrendamiento (MLA) con MTN Nigeria hasta diciembre de 2032. Este acuerdo abarca aproximadamente 13,500 contratos de arrendamiento, incluida la renovación de 1,430 arrendamientos de los 2,500 que estaban a punto de vencer en 2024 y 2025. Los nuevos términos incluyen una división más equilibrada entre moneda local y extranjera, así como un nuevo componente vinculado al diésel para protegerse contra las fluctuaciones de precios.
Esta renovación subraya el papel crítico de la infraestructura de IHS Towers en la habilitación de la conectividad móvil para MTN Nigeria, que atiende a aproximadamente 79 millones de suscriptores. El acuerdo incluye escaladores vinculados tanto a los Índices de Precios al Consumidor de EE.UU. como a los de Nigeria, así como un componente indexado a los costos de energía diésel. Esto marca la finalización de todas las renovaciones de MLA de torres en Nigeria para IHS Towers, fortaleciendo su asociación con MTN.
IHS Towers는 글로벌 통신 인프라 제공업체로서 MTN Nigeria와의 모든 타워 마스터 임대 계약(MLA)의 갱신 및 연장을 2032년 12월까지 발표했습니다. 이 계약은 약 13,500개의 임대 계약을 포함하며, 2024년과 2025년에 만료 예정인 2,500개 중 1,430개의 임대를 갱신합니다. 새로운 조건에는 현지 통화와 외환 간의 더 균형 잡힌 분배와 가격 변동에 대한 헤지를 위한 디젤 연동 구성 요소가 포함됩니다.
이번 갱신은 MTN Nigeria를 위한 모바일 연결성을 가능하게 하는 IHS Towers의 인프라가 중요한 역할을 하고 있음을 강조합니다. 이 운영자는 약 7,900만 가입자에게 서비스를 제공하고 있습니다. 계약에는 미국 및 나이지리아의 소비자 물가 지수에 연결된 상승 요인과 디젤 전력 비용에 연동된 구성 요소가 포함됩니다. 이는 IHS Towers의 나이지리아 타워 MLA 갱신이 완료된 것을 의미하며 MTN과의 파트너십을 강화합니다.
IHS Towers, un fournisseur global de premier plan en infrastructure de communication, a annoncé le renouvellement et l'extension de tous les contrats de location principaux (MLA) avec MTN Nigeria jusqu'en décembre 2032. Cet accord couvre environ 13 500 contrats de location, y compris le renouvellement de 1 430 locations parmi les 2 500 qui devaient expirer en 2024 et 2025. Les nouveaux termes incluent une répartition plus équilibrée entre la monnaie locale et la monnaie étrangère, ainsi qu'un nouveau composant lié au diesel pour se prémunir contre les fluctuations de prix.
Ce renouvellement souligne le rôle essentiel de l'infrastructure d'IHS Towers dans la facilitation de la connectivité mobile pour MTN Nigeria, qui sert environ 79 millions d'abonnés. L'accord comprend des augmentations liées aux indices des prix à la consommation aux États-Unis et au Nigeria, ainsi qu'un composant indexé sur les coûts de l'énergie diesel. Cela marque l'achèvement de tous les renouvellements de MLA de tours au Nigeria pour IHS Towers, renforçant ainsi son partenariat avec MTN.
IHS Towers, ein führender globaler Anbieter von Kommunikationsinfrastrukturen, hat die Erneuerung und Verlängerung aller Master-Leasingverträge (MLA) mit MTN Nigeria bis Dezember 2032 angekündigt. Dieser Vertrag umfasst etwa 13.500 Mietverträge, einschließlich der Erneuerung von 1.430 Mietverhältnissen aus den 2.500, die 2024 und 2025 auslaufen sollten. Die neuen Bedingungen beinhalten eine ausgewogenere Aufteilung zwischen lokaler und ausländischer Währung sowie eine neue, an Diesel gebundene Komponente zum Schutz vor Preisschwankungen.
Diese Erneuerung unterstreicht die entscheidende Rolle der IHS Towers-Infrastruktur bei der Ermöglichung der mobilen Konnektivität für MTN Nigeria, das etwa 79 Millionen Abonnenten bedient. Der Vertrag umfasst Komponenten, die sowohl an die Verbraucherpreisindizes der USA als auch Nigerias gekoppelt sind, sowie einen an Dieselstromkosten gebundenen Bestandteil. Dies markiert den Abschluss aller Tower MLA-Erneuerungen in Nigeria für IHS Towers und stärkt die Partnerschaft mit MTN.
- Renewal and extension of all Nigerian tower MLAs with MTN Nigeria until 2032
- Coverage of approximately 13,500 tenancy contracts
- Introduction of a more sustainable currency split and diesel-linked component
- Completion of all tower MLA renewals in Nigeria for IHS Towers
- Non-renewal of approximately 1,070 tenancies out of 2,500 expiring in 2024 and 2025
This renewal agreement between IHS Towers and MTN Nigeria is significantly impactful for IHS Towers' business stability and future revenue streams. The extension of approximately 13,500 tenancies until 2032 provides long-term visibility on a substantial portion of IHS Towers' Nigerian operations. The new financial terms, including a more balanced currency split and a diesel-linked component, should help mitigate FX risks and volatile fuel costs, potentially improving profit margins.
The renewal of 1,430 tenancies out of the 2,500 expiring in 2024-2025 is positive, though it suggests some consolidation. The introduction of escalators linked to both US and Nigerian Consumer Price Indices could provide better inflation protection. Overall, this agreement strengthens IHS Towers' position in the Nigerian market and enhances its relationship with its largest customer, which is important for long-term growth prospects.
This renewal underscores the critical role of IHS Towers' infrastructure in Nigeria's telecommunications landscape. With MTN Nigeria boasting approximately 79 million subscribers, the extended partnership ensures continued mobile connectivity for a significant portion of the population. The agreement's longevity until 2032 indicates confidence in IHS Towers' ability to meet evolving network demands.
The new diesel-linked component is particularly noteworthy, as it addresses a major operational challenge in Nigeria - power supply. This adaptation shows IHS Towers' flexibility in meeting market-specific needs. However, the non-renewal of about 1,070 tenancies might suggest network optimization or potential competition. Overall, this deal reinforces IHS Towers' position as a key enabler of digital infrastructure in Nigeria, important for the country's growing digital economy.
Renewals Cover Approximately 13,500 Tenancies Through to End of 2032
Reaffirms Long-Term Partnership with MTN and Criticality of IHS Infrastructure in Enabling Mobile Connectivity
With regards to the approximately 2,500 MTN Nigeria tenancies that had been due to expire at the end of 2024 and in 2025, under the new terms IHS Towers will renew 1,430 tenancies (including new colocations).
The renewed and extended contracts include new financial terms that provide what the parties believe to be a more sustainable split between local and foreign currency, as well as a new diesel-linked component. The arrangement is testament to the criticality of IHS Towers’ infrastructure and the strong operational links between IHS Towers and MTN, Nigeria’s largest mobile network operator, with approximately 79 million subscribers.
Under the new terms, there is a USD component that will continue to benefit from annual escalators linked to US Consumer Price Index, a NGN component that will benefit from escalators linked to Nigerian Consumer Price Index, and a new component indexed to the cost of providing diesel power, introduced to act as a hedge against diesel prices and FX fluctuations.
This marks a significant milestone for IHS Towers as it has now completed the renewal of all tower MLAs in
Sam Darwish, Chairman & CEO, IHS Towers, said, “We are delighted to announce the renewal and extension of our agreement with our largest customer, MTN Nigeria. This marks a significant milestone for IHS Towers as it has completed the renewal of all tower MLAs in
About IHS Towers: IHS Towers is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count and is solely focused on the emerging markets. The Company has nearly 40,000 towers across its 10 markets, including
Cautionary statements
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates," “believes,” “estimates,” “forecast,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, business strategy, plans, market growth, position and our objectives for future operations, our ability to maintain relationships with customers and continue to renew customer lease agreements, the potential benefit of the terms of such renewals, the ongoing impact of currency and exchange rate fluctuations, and the impact (illustrative or otherwise) of the new agreements with MTN Nigeria (including certain rebased fee components) on our financial results. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: we may not successfully execute our business strategy and operating plans or manage our growth; competition in the tower infrastructure industry could have a material and adverse effect on our business; we may become party to disputes and legal, tax and regulatory proceedings or actions; and increased costs and obligations incurred as a result of operating as a public company; and the other important factors discussed in the section titled “Risk Factors” in IHS Towers’ Annual Report on Form 20-F for the fiscal year ended December 31, 2023. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this press release and the documents that we reference in this press release with the understanding that our actual future results, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we do not assume, and expressly disclaim, any obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise. Additionally, references to our website and other documents contained in this press release are provided for convenience only, and their content is not incorporated by reference into this press release.
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Giles Bethule / Akash Lodh
FGS Global
Giles.Bethule@fgsglobal.com / Akash.Lodh@fgsglobal.com
+44 207 251 38 01
Source: IHS Towers
FAQ
What is the duration of the renewed tower Master Lease Agreements between IHS Towers and MTN Nigeria?
How many tenancy contracts are covered in the agreement between IHS Towers (IHS) and MTN Nigeria?
What new financial terms are included in the renewed agreements between IHS Towers and MTN Nigeria?
How many subscribers does MTN Nigeria have according to the press release?
