MTN Nigeria set to issue N100bn bond to fund working capital
MTN Nigeria Plc plans to issue up to N100 billion series 1 bond under its new N200 billion bond issuance programme.
In a statement signed by Uto Ukpanah, Company Secretary and obtained from the Nigerian Exchange Limited the telecom firm said it has completed registration with the Securities and Exchange Commission (SEC) of its N200 billion bond issuance programme announced in July 2022.
MTN Nigeria has received approval to launch the series 1 (Tranche A) 4-Year Fixed Rate Bond and series 1 (Tranche B) 10-Year Fixed Rate Bond under the programme. The issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources in line with its corporate objectives.
MTN Nigeria will launch the book build in respect of the series 1 (Tranche A and B) Bond today (15 September 2022).
MTN Nigeria recently notified the Nigerian Exchange Limited and the investing public of its proposed issuance of up to N23 billion series 3 commercial paper notes under its N150 billion commercial paper issuance programme.
The issuance according to a statement signed is part of the company’s strategy to diversify its financing options, with the funds deployed towards working capital and general corporate purposes. MTN had also issued a historic N127 billion Series 1 & 2 Commercial Paper (CP) under its registered N150 billion programme.The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50 per cent yield and a 254-day Series 2 issuance priced at an 8.50 per cent yield. According to the telecommunication giant, the issuance was in line with its strategy to diversify financing options, with the proceeds being deployed towards working capital and general corporate purposes. Speaking at the signing ceremony, the Chief Executive Officer, MTN Nigeria Communication, Mr Karl Toriola explained that the N127 billion CP issuance would go into the record books as the largest CP issuance in Nigeria.
According to him, “The success of our CP issuance is a clear demonstration of the strength and acceptance of the MTN brand, and the trust placed by the investor community in MTN Nigeria’s company’s leadership, strong financial performance and corporate strategy.He noted that MTN Nigeria with the completion of the N127 billion CP aims at improving customer services and high-quality of bouquet services that include 5G spectrum that awaits regulatory approval.”This CP allows us funding at an efficient rate to continue our products deployment and distribution network,” he said.
