MTN Nigeria Plc raises N72.1 billion via commercial paper

MTN Nigeria Communications Plc has completed its series 10 commercial paper issuance under its upsized N250 billion commercial paper issuance programme.

This was contained in the company’s notice to the Nigerian Exchange Limited and the investing public seen by Nairametrics.

According to the statement signed by Uto Ukpanah, the Company Secretary, the telecom giant said it sought to raise N72.1 billion and the offer recorded 149% subscription with N72.1 billion issued.

The 266-day commercial paper was issued on 29 November 2023 at a yield of 16%.

Short-term working: capital The CP issuance aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt. The proceeds will be applied towards short-term working capital requirements.

MTN Nigeria’s Chief Executive Officer, Karl Toriola said:

“We are pleased with the support received from the investor community, having recorded a 149% subscription from a broad range of investors. This reflects NTN Nigeria’s robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates”

Arranger and dealers: 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 & 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.

According to the statement signed by Uto Ukpanah, Company Secretary, 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.

What you should know

MTN Nigeria Communications Plc recorded a year-on-year decline of 75.7% in its profit before tax to N32.08 billion in Q3 2023, as compared to N132.04 billion in Q3 2022.

According to the group’s financial

statement for the period ending September 30, 2023, the group recorded a revenue of N614.2 billion in Q3 2023, a 21.4% year-on-year increase from the corresponding period in 2022.

The figure modified the group’s nine-month revenue to N1.78 trillion, an increase of 21.76% year-on-year from the corresponding quarter in 2022.