MTN Completes N250Bn Commercial Paper Issuance Programme

MTN Nigeria Communications Plc, has announced the completion of its series 10 commercial paper issuance under an upsized N250 billion commercial paper issuance programme, according to company’s notice to the Nigerian Exchange Limited.

The notice, signed by Uto Ukpanah, Company Secretary, said that the telecom giant  was seeking to raise N72.1 billion with the offer recording 149 per cent subscription  and N72.1 billion issued.

The 266-day commercial paper was issued on November 29, 2023, at a yield of 16 per cent and aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt and proceeds applied towards short-term working capital requirements.

Speaking on the development, Karl Toriola, chief executive officer, MTN Nigeria said, “We are pleased with the support received from the investor community, having recorded a 149 per cent subscription from a broad range of investors. This reflects MTN Nigeria’s robust financial capacity, brand strength, and market leadership amid the upward pressure on interest rates”

Stanbic IBTC Capital Limited played the role of arranger and dealer with ARM Securities Limited. Chapel Hill Denham Advisory Limited, Coronations Marchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital and Investments Limited, Rand Marchant Bank Limited and Vetiva Capital Management Limited played the role of joint dealers on the transaction.  The communication firm had recently proposed the issuance of up to N72.1 billion series 10 commercial paper notes under its N250 billion commercial paper issuance programme.

Ukpanah, added that  the issuance is part of the company’s strategy to diversify its funding sources with the funds being deployed towards short-term working capital requirements.