MTN Nigeria Communications Plc has raised N42.2 billion through its Series 15 and 16 Commercial Paper (CP) issuance under its N250 billion Commercial Paper Issuance Programme.
According to a recent notice to the Nigerian Exchange Limited (NGX) signed by the Company Secretary, Uto Ukpanah, MTN Nigeria disclosed that the 180-day and 270-day Commercial Papers were issued at yields of 27.50 per cent and 29.00 per cent, respectively.
The Series 15 and 16 CP were issued on December 23, 2024, following the successful completion of two prior CP issuances in the last two months.
In his comments on the successful CP issuance, the Chief Executive Officer of MTN Nigeria, Karl Toriola, said the issuance was part of its funding strategy as the proceeds from the issuances will be applied toward the company’s short-term working capital requirements.
Toriola said, “We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team.
“The CP Issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community, as well as our advisers.”
The CP issuance was arranged and managed by Stanbic IBTC Capital Limited, with CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited acting as joint dealers.
MTN Nigeria’s CPs have been oversubscribed twice
MTN Nigeria’s Series 11 and 12, and Series 13 and 14 CP issuances under its N250 billion CP Issuance Programme were both oversubscribed.
On November 15, the telecommunications giant announced the 150 per cent oversubscription of its Series 11 and 12 CPs to the tune of N75.18 billion.
The Series 11 and 12 CPs were issued on November 7, 2024, under MTN Nigeria’s N250 billion Commercial Paper Issuance Programme and initially targeted N50 billion.
On November 27, 2024, MTN Nigeria issued its Series 13 and 14 CPs, which saw a 144 per cent oversubscription to N72.18 billion.
It said the CPs were oversubscribed by N22.18 billion from the initial target of N50 billion.
The Commercial Paper offered competitive yields of 27.50 per cent for the 181-day paper and 29.00 per cent for the 265-day paper and attracted a wide range of investors.
