Nigeria’s telecom giant, MTN Nigeria has disclosed raising an
amount of N72.1 billion through its 266-day commercial paper (CP). The company, in a notice on the
Nigerian Exchange, said: “MTN Nigeria
Communications hereby notifies the investing public of the successful
completion of its series 10 Commercial Paper issuance under its upsized N250
billion Commercial Paper Issuance Programme.”
It
added that “MTN Nigeria sought to raise
N72.1 billion and the offer recorded 149 per cent subscription with N72.1
billion issued.
“The 266-day commercial paper
was issued on November 29, 2023, at a yield of 16 per cent. The CP Issuance
aligns with MTN Nigeria’s strategy to continue diversifying its Funding sources
and reducing its average cost of debt. The proceeds will be applied towards
short-term working capital requirements.”
Chief executive officer of MTN Nigeria, 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 amidst the upward pressure on
interest rates.”
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 & Investments Limited,
Rand Merchant Bank Nigeria Limited and Vetiva Capital Management Limited
playing the role of Joint Dealers on the transaction.
