MTN Nigeria Plc is finalizing arrangements to launch a new N200 billion bond offer as entities involved in the proposed debt instrument are intensifying their engagements with potential investors to ensure its success.
Some sources in the nation’s investment market space hinted that the bond offer may open in the next few weeks as stockbroking firms have commenced aggressive marketing of the offer, using details that indicated the finalization of the offer structure.
According to information on the proposed debt instrument provided by market regulators, the leading telecommunications company plans to issue two tranches of bonds, comprising a tranche of four-year bond maturing in 2026 and another tranche of 10-year bond maturing in 2032.
Already, the bond issue has been rated AAA by Global Credit Rating (GCR) and Aa+ by Agusto & Co. Limited, the same ratings assigned to the Mobile National Operator (MNO); underlining its strong financial and other performance indices.
Further assessment of the information on the planned bond offer by the telco reflected that the bond would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high net-worth investors.
Market experts say that based on the facts at their disposal, MTN Nigeria would use the net proceeds of the new bond issue to support its capital expenditure, working capital and other corporate operations purposes.
Under the arrangements, the telco will offer a tranche of four-year bond and another tranche of 10-year bond all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.
Also, the proposed N200 billion bond is expected to be offered at a par value of N1,000 with minimum subscription of 10,000 or N10 million and thereafter in multiples of N1 million.
The new bonds are expected to be listed on the FMDQ Securities Exchange Limited after the completion of the issuance.
