N110bn Bonds: MTN Nigeria records 1.32% oversubscription

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MTN Nigeria Communications Plc has announced the successful completion of the issuance of its N110billion series 1 seven  year 13.0% Fixed Rate Bonds due 2028 (Series 1 Bond) under the N200 billion Bond Issuance programme.

In notification at the Nigerian Exchange Limited (NGX) on Thursday signed byCompany Secretary, Uto Ukpanah said the telco said the total value of orders received during the book build was N132,151,000,000, representing a 1.32% times oversubscription of the intended N100 billion issuance.

The series 1 bond is the largest corporate bond issuance in the debt capital markets thus far in the 2021 and MTN Nigeria’s debut in the domestic bond market, the company having established a strong presence in commercial paper issuances.

According to the note, the book build process in respect of the transaction launched on 9 April 2021 and was completed on 16 April 2021.

It said, “The transaction was well received with active participation from a wide range of high value and quality investors including pension funds, fund managers, banks, insurance companies, trustees, corporate, and high net worth individuals.”

Commenting on the bond issuance, CEO of MTN Nigeria, Karl Toriola said, “We are very proud of this landmark transaction, which is the first ever telco bond issued in Nigeria and the largest corporate bond issuance this year.

“The domestic debt capital market has given us the opportunity to further diversify our funding sources and extend the maturity of our debt portfolio and profile to match investment in infrastructure. the strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, the investor confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry.”

Chapel Hill Denham Advisory Limited acted as th Lead issuing House while Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant bank and Vetiva Capital Management acted as joint issuing houses.