MTN Nigeria Communications Plc, has announced the completion of its series 10 commercial paper issuance under an upsized N250 billion commercial paper issuance programme.
This was contained in the company’s notice to the Nigerian Exchange Limited and the investing public sighted by Daily Sun.
The statement, signed by Uto Ukpanah, Company Secretary, said that the telecom giant was seeking to raise N72.1 billion with the offer recording 149 per cent subscription and N72.1 billion issued.
The 266-day commercial paper was issued on November 29, 2023, at a yield of 16 per cent and aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt and proceeds applied towards short-term working capital requirements.
Speaking on the development, MTN Nigeria’s Chief Executive Officer, Karl Toriola, 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 MTN Nigeria’s robust financial capacity, brand strength, and market leadership amid 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 and 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.
SOURCE: THE SUN
