MTN Nigeria anounces Series 15 and 16 Commercial Papers after N72.18bn oversubscription
MTN Nigeria has officially informed the Nigerian Exchange and the public of its intention to issue Series 15 and 16 Commercial Papers, with a target of N50 billion.
This follows the successful issuance of Series 13 and 14 Commercial Papers on 29 November 2024, which raised N72.18 billion, exceeding the initial N50 billion target by 144%.
Building on this success, MTN Nigeria is advancing its N250 billion Commercial Paper Issuance Programme by introducing the new Series 15 and 16 papers, inviting Nigerian investors to participate.
The company stated: “MTN Nigeria Communications PLC (‘MTN Nigeria’ or the ‘Company’) hereby notifies Nigerian Exchange Limited and the investing public of its proposed issuance of up to N50 billion Series 15 and 16 Commercial Paper notes under its N250 billion Commercial Paper Issuance Programme (the ‘Issuance’).”
This new issuance is a strategic effort to diversify the company’s financing options, with the proceeds intended to strengthen its short-term working capital needs.
In recent months, MTN Nigeria successfully raised funds through two previous commercial paper issuances as part of the N250 billion programme. On 29 November 2024, the company issued Series 13 and 14 Commercial Papers, offering yields of 27.50% for the 181-day paper and 29.00% for the 265-day paper, attracting a wide range of investors.
This follows the earlier Series 11 and 12 Commercial Papers, issued on 7 November 2024, which raised N75.1 billion.
Although the Series 13 and 14 issuances had initially aimed for N50 billion, they were oversubscribed by 144%, resulting in a total of N72.18 billion being raised.
Stanbic IBTC acted as the lead arranger and dealer, with other institutions, including CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank, participating as joint dealers.
The N250 billion Commercial Paper Issuance Programme is structured to raise capital in series, helping to fund MTN Nigeria’s operational and strategic objectives. Proceeds from these issuances are intended to enhance operational efficiency and support the company’s growth initiatives.
Financial Performance
MTN Nigeria reported a post-tax loss of N514.9 billion for the first nine months of 2024, a decline primarily driven by the depreciation of the naira, which increased the company’s foreign currency-denominated obligations.
As a result of this loss, MTN Nigeria’s retained earnings and shareholders’ equity fell into negative territory, amounting to N723.0 billion and N573.6 billion, respectively, as of September 2024.
In response to these results, MTN Nigeria’s CEO, Karl Toriola, acknowledged the ongoing challenges posed by foreign exchange fluctuations but emphasised that the company continues to generate positive free cash flow. He attributed this to favourable working capital movements and a reduction in capital expenditures.
Toriola stated: “As we navigate the ongoing macroeconomic headwinds, we remain committed to initiatives that will accelerate our earnings recovery, strengthen our balance sheet, and expedite the restoration of our net asset position.”
To further support its balance sheet and enhance operational stability, MTN Nigeria is proceeding with the issuance of Series 15 and 16 commercial papers under its N250 billion commercial paper programme.
