MTN Nigeria communication PLC has announced the issuance of its series 1 & 2 commercial papers under its ₦150 billion naira Commercial Paper Programme.
The company sent a notification to the Nigerian Exchange Group and made available a statement to customers looking for investment. It noted that the issuance consisted of two tenors. These were a 184-day series issue priced at a 7.5% yield and a 254 day series issuance priced as an 8.50% yield.
The company stated that it was consistent with its strategy and principle to diversify its financing options. Proceeds will be used for working capital and general corporate purposes.
“We are happy to have successfully finalized what will go down in the record books as Nigeria’s largest Commercial Paper issue. The success of our CP Issuance is a clear demonstration of the strength and acceptance of the MTN brand, and the trust placed by the investor community in our company’s leadership, strong financial performance and corporate strategy”, MTN Nigeria CEO Olukotun Karl Toriola stated in the ceremony.
“Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission (NCC), and having just been granted final approval by the Central Bank of Nigeria (CBN) for Momo Payment Service Bank Limited to commence operations license, this landmark issuance represents another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.
“We want to thank all our customers and investors for their continued support of the MTN brand. We thank Stanbic IBTC Capital, our Lead Arranger and Dealer on this landmark CP Issuance, and our Joint Dealers – Chapel Hill Denham, Coronation Merchant Bank, FBNQuest Merchant Bank, FSDH Capital, Standard Chartered and UCML Capital.
“We also thank all other professional parties to the transaction, who worked tirelessly to ensure its timely and successful completion and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short-term funding via the issuance of commercial papers.”
This issuance will further cement the use of commercial paper by firms and companies to raise funds from public sources and manage short-term financial responsibilities. It will also give them the opportunity to make and share wealth.
MTN Nigeria – part of the MTN Group – a multinational telecommunications group, which operates in 19 countries in Africa and the Middle East – is one of Africa’s largest providers of communications services, connecting approximately 69 million people in rural and urban areas across the country.