MTNN’s N100bn Commercial Paper Oversubscribed
OMOTAYO ARAOYE
MTN Nigeria Communications (MTN) Plc has announced that its N100 billion Series I & II Commercial Paper (CP) notes under the debut N100 billion CP programme was oversubscribed by 400 percent.
Nigeria’s largest telecommunications network disclosed that the CPI was actively subscribed by individuals and institutional investors.
MTN said, “The CP 1 had a tenor of 180 days and 270 days (CP 2) with an effective yield of 4.90% for an N20 billion size (CP1) and 5.95% for an N80 billion size (CP2) respectively. The CP 1 & 2 notes will be listed on the FMDQ Exchange”.
Its Chief Executive Officer, Ferdinand Moolman, explained that the investors included pension fund administrators, asset managers, and other corporate firms and other financial institutions.
Moolman said; “The N100 billion issued is the largest commercial paper issuance by a Nigerian corporate, it allows us to broaden our sources for funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.” What MTN Nigeria plans to use the proceeds for? The proceeds from the MTN Nigeria Communications Commercial paper issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.
Chapel Hill Denham Advisory Limited acted as the arranger and dealer of this successful Commercial Paper Issuance recorded in Nigeria’s debt market.
Mobile Telephone Network (MTN) is a South Africa-based multinational mobile telecommunications company, operating majorly in African countries including Nigeria.
Comments are closed.