MTN Nigeria to register follow-up N200bn bond
MTN Nigeria Plc on Tuesday announced that it has applied to the Securities and Exchange Commission (SEC) for the registration of a new N200billion Bond Issuance Programme.
Company Secretary, Uto Ukpanah in a statement on the Nigerian Exchange Limited (NGX) noted that the bond issuance is a follow-up to the successful N200billion debut bond issuance programme in 2021 under which the telecommunication giant issued the N110billion 13.00 per cent 7-year series I bonds due 2028 and N90billion 12.75 per cent 10-year Series II bonds due 2031.
According to him, proceeds of the bond issuance would be used for capital expenditure (network expansion), working capital management and general corporate purpose.
“The company will decide on assurances under the Second Bond Issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals,” he explained.
Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola, in a statement had said: “We are very proud of this landmark transaction, which is the first ever telecommunication bond issued in Nigeria and the largest corporate bond issuance in 2021.
“The Nigerian debt capital market has given us the opportunity to diversify our funding sources further and enabled us to extend the maturities of our debt portfolio to match infrastructure investments.
“Investors’ strong support for this transaction, given the challenging economic environment, is a reflection of their confidence in MTN Nigeria’s long-term strategy, the management team, the depth of the market, and the overall growth in the telecommunications industry, and we do appreciate the support.”
