Economy

MTN Nigeria raises N127bn via commercial paper

MTN Nigeria Communication Plc has raised N127 billion through commercial papers (CP).

The N127 billion was raised through the issuance of series 1 &11 notes under the company’s N150 billion commercial papers (CP) programme.

The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50 per cent yield and a 254-day series 2 issuance priced at an 8.50 percent yield.

Speaking at the signing ceremony in Lagos, Mr Karl OlutokunToriola, Chief Executive, MTN Nigeria, said the issuance is in line with the company’s strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes.

According to him, the CP, which allowed the company to raise fund at a very efficient rate, would enable the issuer to maximise returns to its shareholders.

He said: “We are delighted to have successfully concluded what will go into the record books as the largest commercial paper issuance in Nigeria. 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.

“Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission (NCC) and also having just been granted final approval by the Central Bank of Nigeria (CBN) for Momo Payment Service Bank Limited to commence operations licence, this landmark issuance represents yet another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.

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