MTN Nigeria, one of Nigeria’s mobile network operators (MNOs) has successfully completed the issuance of its N89.999 billion Series II 10-year bond with a fixed rate of 12.75% due by 2031.
This hint was given by the telco’s Company Secretary, Uto Ukpanah, in a disclosure to the Nigerian Exchange Group (NGX).
The N89.999 billion Series II bond, which has now completed the telco’s N200 billion bond issuance programme, is its second issuance this year following the debut last May.
This disclosure by the Company Secretary to the investment market regulatory authorities indicated that the latest issuance was oversubscribed 1.48 times, with total value of subscriptions received peaking at N133.45 billion.
The telco’s Company Secretary disclosed: “The bookbuild process commenced on 8th October 2021 and was completed on 15th October 2021. The offer was well received with active participation from diverse range of high value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals.”
Commenting on the issuance, Chief Executive officer of the telecom giant, Karl Toriola expressed the board and management’s gratitude for the support received from the regulatory authorities to access the local debt market.
He enthused: “We continue to be grateful for the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network. In line with the Company’s strategy, the bonds issued this year enable us to diversify funding sources and extend the maturity profile of the company’s debt portfolio.”
“We are very proud of the landmark transaction and thank the investor community for their continued confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry”, the CEO added.
In her remarks, Managing Director, Chapel Hill Denham, Kemi Awodein, said the company, which is the Lead Issuing House for the Series II Bond, was “delighted to have led and completed MTN Nigeria’s N200 Billion Bond Issuance Programme with the pricing of the N89.999 billion Series 2 bonds.
“MTN Nigeria’s strong credit story has underpinned what have been two oversubscribed issuances in tricky market conditions this year. Chapel Hill Denham acted as Lead Manager and Bookrunner on the MTN debut and follow on issuances of the first bonds issued by a Nigerian telecommunications operator further broadening Nigeria’s capital markets.
“We are humbled to have led this landmark transaction and pleased to have delivered results for MTN Nigeria and the opportunity to be a part of MTN’s continued success story”, Awodein added.
According to the telco’s management, the net proceeds of the issuance will be used to optimise the company’s capital structure and finance network expansion.
While Chapel Hill Denham acted as Lead Issuing House for the Series II Bond, Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted as Joint Issuing Houses.
