MTN Nigeria Communications Plc has completed its series 10 commercial paper issuance under its upsized N250 billion commercial paper issuance programme.
This was contained in the company’s notice to the Nigerian Exchange Limited and the investing public seen by Nairametrics.
According to the statement signed by Uto Ukpanah, the Company Secretary, the telecom giant said it sought to raise N72.1 billion and the offer recorded 149 per cent subscription with N72.1 billion issued.
The 266-day commercial paper was issued on November 29, 2023 at a yield of 16 per cent.
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.
Karl Toriola, Chief Executive Officer, MTN Nigeria said, “We are pleased with the support received from the investor community, having recorded a 149 per cent subscription from a broad range of investors. This reflects NTN Nigeria’s robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates”
Stanbic IBTC Capital Limited played the role of Arranger and Dealer with ARM Securities Limited. Chapel Hill Denham Advisory Limited, Coronations Marchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital &Investments Limited, Rand Marchant Bank Limited, and Vetiva Capital Management Limited played the role of Joint Dealers on the transaction.
The communication firm had recently proposed the issuance of up to N72.1 billion series 10 commercial paper notes under its N250 billion commercial paper issuance programme.
According to the statement signed by Uto Ukpanah, Company Secretary, the issuance is part of the company’s strategy to diversify its funding sources with the funds being deployed towards short-term working capital requirements.