MTN Nigeria to Drive Expansion with N200Bn

MTN Nigeria Communications (MTN Nigeria) Plc is concluding arrangements to raise about N200 billion under a new capital raising programme.

MTN plans to issue two tranches of bonds ranging from four to 10 year tenors to raise new funds to partly finance its expansionary drives and further deepen its balance sheet for stable growth.

While the opening date for the new bond issue is yet to be decided, sources yesterday said the new capital raising would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high networth investors.

MTN will use the net proceeds of the new bond issue to support its capital expenditure, working capital and other general corporate purposes.

Under the arrangements, MTN  will offer a tranche of four-year bonds and another tranche of 10-year bonds; all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.

The bond will be offered at a par value of N1000 with minimum subscription of 10000 or N10 million. The new bonds are expected to be listed on the  FMDQ Securities Exchange Limited after the completion of the issuance.