MTN Nigeria Issues N127bn Commercial Papers
MTN Nigeria Communications Plc has issued N127 billion Series 1 &2 Commercial Paper under its registered N150 billion Commercial Paper Programme to diversify its financing options
Commercial paper is an unsecured promissory note with a fixed maturity of rarely more than 270 days.
Uto Ukpanah, MTN’s Company Secretary in a disclosure on Monday said the proceeds would be deployed towards working capital and general corporate purposes.
According to the yellow brand, the issuance is in two tenors – a 184-day Serie issuance at a 7.50 per cent yield and a 254-day Series 2 issuance at an 8.50 per cent yield.
MTN added that Stanbic BTC Capital Limited acted as Lead Arranger and Dealer, while Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Capital Limited, Standard Nigeria Limited and UCML Capital Limited acted as Joint Dealers.
“MTN Nigeria Communications PLC (MTN Nigeria or the Company) hereby notifies Nigerian Exchange Limited and the investing public of its N127 billion Series 1 &2 Commercial Paper Issuance (the “Issue under its registered N150 billion Commercial Paper Programme,” the South African based firm stated.
“The Issuance comprised two tenors- a 184-day Serie issuance priced at a 7.50 per cent yield and a 254-day Series 2 issuance priced at an 8.50 per cent yield. Stanbic BTC Capital Limited acted as Lead Arranger and Dealer, while Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Capital Limited, Standard Chartered Capital & Advisory Nigeria Limited and UCML Capital Limited acted as Joint Dealers.
“The Issuance is in line with the Company’s strategy to diversify its financing options with the proceeds being deployed towards working capital and general corporate purposes.”
In May 2021, FMDQ Securities Exchange Limited (FMDQ Exchange) admitted for quotation of the MTN Nigeria N19.77 billion series 3 and N53.74 billion series 4 commercial papers (CP) under its N200.00 CP issuance programme on its platform.
The Chief Financial Officer, MTN Nigeria, Modupe Kadiri, said the company was pleased with the success of the series 3 and series 4 CP issuances, which has further diversified its funding sources and helped to optimise finance cost as well as strengthened the Nigerian financial markets.
She said the issuance was well received by the market, with strong participation from a diverse group of investors, signifying the market’s continued confidence in the business.
On Monday, MTN shares traded at N213 per share with the telecom giant’s market capitalization currently at N4.335 trillion.
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