MTN Nigeria Plc has proposed the issuance of up to N52.9 billion series 8 &9 Commercial paper (CP) under its N250 billion issuance programme.
The telecommunication giant in a statement posted on the Nigerian Exchange Limited (NGX) and signed by Company Secretary, Uto Ukanah noted that the issuance is part of the company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital and financing requirements.
The company recently said that it completed its Series 6 & 7 CP Issuance under its upsized N250 billion CP Issuance Programme with 146 per cent oversubscription by investors.
The telecommunication giant in a notice on the Nigerian Exchange Limited (NGX) said it wanted to raise N100 billion, and the offer recorded 146 per cent subscription with N125 billion issued across both series
Ukpanah in a statement said the offer represents the largest aggregate CP issuance within a calendar year by any corporate in Nigeria’s debt capital markets.
MTN Nigeria issued 181-day CP at a yield of 13 per cent and 265-day CP at a yield of 13.50 per cent, with an issue date of August 23, 2023.
He stated that 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,” he said.
MTN Nigeria’s Chief Executive Officer, Karl Toriola in a statement said, “We are pleased with the support received from the investor’s community, having recorded 146 per cent subscription. This reflects MTN Nigeria’s robust financial capacity, the brand’s strength, and our leading role in the industry.”
MTN Nigeria Communications recorded a year-on-year decline of 75.7per cent in its profit before tax to N32.08 billion in Q3 2023, as compared to N132.04 billion in Q3 2022.
According to the group’s financial statement for the period ending September 30, 2023, the group recorded a revenue of N614.2 billion in Q3 2023, a 21.4per cent year-on-year increase from the corresponding period in 2022.
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