MTN Nigeria raises N72.18bn through commercial paper
MTN Nigeria Communications Plc says it has successfully raised N72.18 billion through the issuance of commercial paper (CP) notes.
In a statement on Thursday, the company said it initially sought to raise N50 billion, but the offer recorded a 144 percent over-subscription.
Commercial papers are unsecured promissory notes that pay a fixed rate of interest and are typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding new projects.
“MTN Nigeria Communications PLC (MTN Nigeria or the ‘Company’) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 13 and 14 Commercial Paper issuance under the Company’s N250 billion Commercial Paper Issuance Programme (the ‘CP Issuance’),” the company said.
“MTN Nigeria sought to raise N50 billion, but the offer recorded a 144% over subscription with N72.18 billion issued.
“The 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Friday, 29 November 2024.
“This follows the N75.18 billion Commercial Paper issued on 7 November 2024, demonstrating investor confidence in the management and financial performance of MTN Nigeria. The proceeds will be used to support short-term working capital requirements.”
Karl Toriola, MTN Nigeria’s chief executive officer (CEO), said the company is pleased with the support received from the investor community.
“This further reinforces MTN Nigeria’s financial position, brand strength and market leadership amidst the challenging macro conditions,” Toriola said.
The lead arranger and dealer for the transaction was Stanbic IBTC Capital Limited.
CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Rand Merchant Bank Nigeria Limited were the joint dealers.
