MTN Nigeria Communications Plc has announced the successful conclusion of its latest commercial paper (CP) issuance, raising N72.18 billion. The company initially set out to raise N50 billion but saw overwhelming investor interest, leading to a 144 per cent oversubscription.
In a statement filed on the portal of the Nigerian Exchange Limited (NGX), the telecommunications giant explained that the issuance was part of its N250 billion Commercial Paper Issuance Programme.
Commercial papers, widely recognised as unsecured promissory notes with fixed interest rates, are typically issued by corporations and financial institutions to address short-term funding needs such as financing receivables, operational expenses, and new projects. “MTN Nigeria hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 13 and 14 Commercial Paper issuance under the Company’s N250 billion Commercial Paper Issuance Programme (the ‘CP Issuance’),” the company stated.
The issuance involved 180-day and 270-day CP notes, which were priced at attractive yields of 27.50 per cent and 29.00 per cent, respectively. The issue date for the CP was Friday, November 29, 2024. The proceeds are expected to bolster MTN Nigeria’s short-term working capital, reinforcing the company’s operational capacity amidst a challenging economic landscape.
This recent issuance follows the N75.18 billion raised earlier in November 2024 under the same CP Issuance Programme. The two successful capital raises within such a short period underline the confidence investors have in MTN Nigeria’s financial health, brand reputation, and market leadership.
Commenting on the achievement, Karl Toriola, the Chief Executive Officer of MTN Nigeria, expressed gratitude to investors for their strong support. “This further reinforces MTN Nigeria’s financial position, brand strength, and market leadership amidst the challenging macro conditions,” Toriola said.
The transaction saw Stanbic IBTC Capital Limited acting as the lead arranger and dealer, supported by a consortium of joint dealers, including CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Rand Merchant Bank Nigeria Limited.