MTN Nigeria To Raise N23 Billion In Commercial Paper To Finance Working Capital, General Purposes

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MTN Nigeria, leading communications services provider, has announced plans to raise N23 billion in Commercial Paper (CP), in a bid to diversify its funding sources.
In a regulatory filing with the Nigerian Exchange Limited, the telecom firm said the debt issuance is part of its N150 billion commercial paper programme.
The communication signed by the company secretary stated that detail of the issuance will be communicated to the stakeholders as transactions occur.
“The issuance is part of the company’s strategy to diversify its financing options, with the funds deployed towards working capital and general corporate purposes.
“Further details on the issuance as well as subsequent issuance will be communicated to the market as the transactions occur,” the company said in the regulatory communication.
Last month, the company said it plans to raise fresh N200 billion bonds from the capital market after the firm successfully raised a similar amount last year.
MTN Nigeria said in an announcement on July 20, that it has applied to the Securities and Exchange Commission (SEC) for the purpose of registration of the new bond issuance programme.
“Second Bond Issuance Programme is a follow-on to the successful N200 billion debut Bond Issuance Programme in 2021 under which the Company issued the N110 billion 13.00 per cent 7 Year Series I bonds due 2028 and N90 billion 12.75 per cent 10 Year Series Il bonds due 2031.”
According to the firm, the fresh bond issuance is intended to boost its capital expenditure and improve infrastructure.
“The proceeds of the bond issuance will be used for capital expenditure (network expansion), working capital management and general corporate purpose.
“The Company will decide on issuances under the Second Bond Issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals,” MTN Nigeria said in the filing on July 20, 2022.