MTN Nigeria raises N42.20bn via Commercial Paper issuance
MTN Nigeria Communications Plc has notified the Nigerian Exchange Limited and the investing public of the successful completion of its Series 15 and 16 Commercial Paper issuance under the Company’s N250 billion Commercial Paper Issuance Programme (CP) where the Company raised N42.20 billion.
Company Secretary, MTN Nigeria Communications, Uto Ukpanah stated that the 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Monday, 23 December 2024.
“This follows the successful completion of two prior CP issuances in the last two months. The proceeds will be applied towards the Company’s short-term working capital requirements.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, in a statement 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 telecommunication giant in November 2024 successfully raised N75.18 billion Series 11 & 12 CP issuance under the company’s N250bilion CP issuances programme.
Ukpanah in a statement stated that the telecommunication company had wanted to raise N50 billion in the issuance, stressing that the offer recorded a 150 per cent subscription with N75.18 billion issued to investors.
Ukpanah in his signed statement stated that the proceeds of the issuance will be applied toward the company’s short-term working capital requirements.
According to him, the 181-dy and 265-dy CP were issued at yields of 27.50per cent and 29 per cent, respectively, with an issue date of November 7, 2024,
“The 265-day Series 12 CP was priced broadly at par with the 364-day Nigeria Treasury Bill Instrument, which closed at a yield of 29.84 per cent during the auction held on November 6, 2024.
“This yield was 384 basis points higher than the closing yield at the auction two weeks earlier. This represents a well-timed transaction for the company, as interest rates are expected to rise further following the outcome of the auction as monetary policy authorities continue to address interest and exchange rate pressure.
“The success of the transaction is further demonstrated by the level of oversubscription despite the absence of pension funds following the recent suspension of their participation in a CP by the National Pension Commission. The offer recorded participation from assets managers, banks, insurance companies and other qualified institutional investors,” the statement added.
