MTN Nigeria Communication Plc has announced to the Nigerian Exchange Limited (NGX) and the investing public a successful completion of its Series 10 Commercial Paper (CP) issuance under its upsized N250bllion CP programme.
CP is an unsecured, short-term debt instrument issued by corporations. It’s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories.
A statement signed by its Company Secretary, Uto Ukpanah noted that the telecommunication giant sought to raise N72.1biillion and the offer recorded 149 percent subscription with N72.1billion issued.
He explained that the 266-day CP was issued on November 29, 2023, at a yield of 16 per cent.
According to him, CP issuance aligns with MTN Nigeria’s strategy to continue diversifying its funding source and reducing its average cost of debt. The proceeds will be applied towards short-term working capital requirements.
Chief Executive Officer, of MTN Nigeria, Mr. Karl Toriola in a statement said “We are pleased with the support received from the investor community, having recorded a 149 percent 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.”
MTN Nigeria had declared a year-on-year (YoY) decline of 75.7per cent in its profit before tax to N32.08 billion in the third quarter (Q3) ended September 30, 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 21.4 percent year-on-year increase from the corresponding period in 2022.
The figure modified the group’s nine-month revenue to N1.78 trillion, an increase of 21.76percent year-on-year from the corresponding quarter in 2022.
The stock price of MTN Nigeria closed on Friday, December 15, 2023, at N250.00 per share.
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