MTN Nigeria Communications Plc has announced the completion of its series 10 commercial paper issuance under an upsized N250 billion commercial paper issuance programme.
The company, in its Notice to the Nigerian Exchange Limited, signed by the Company Secretary, Barr. Uto Ukpanah, said that the telecom operator was seeking to raise N72.1 billion with the offer recording 149 per cent subscription and N72.1 billion issued.
According to the Notice to the capital market regulator, the 266-day commercial paper was issued on November 29, 2023, at a yield of 16 per cent and aligns with mobile network operator’s strategy to continue diversifying its funding sources and reducing its average cost of debt and proceeds applied towards short-term working capital requirements.
Commening on the funding initiative, MTN Nigeria Chief Executive Officer, Karl Toriola, said: “We are pleased with the support received from the investor community, having recorded a 149 per cent subscription from a broad range of investors. This reflects MTN Nigeria’s robust financial capacity, brand strength, and market leadership amid the upward pressure on interest rates.”
Based on the CP issuance details, Stanbic IBTC Capital Limited played the role of arranger and dealer with ARM Securities Limited. Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital and Investments Limited, Rand Marchant Bank Limited and Vetiva Capital Management Limited played the role of joint dealers on the transaction.
It would be recalled that the leading MNO recently proposed the issuance of up to N72.1 billion series 10 commercial paper notes under its N250 billion commercial paper issuance programme.
The Company Secretary stated that the issuance wass part of the company’s strategy to diversify its funding sources with the funds being deployed towards short-term working capital requirements.
