MTN Nigeria Communications Plc has completed its N100 billion Commercial Paper (CP) Issuance (series 1 & 2).
The company disclosed the success of the issuance in a notice issued to the Nigerian Stock Exchange on Tuesday.
The CP 1 had a tenor of 180 days and 270 days (CP 2) with an effective yield of 4.90% for a N20 billion size (CP1) and 5.95% for an N80 billion size (CP2) respectively. The CP 1 & 2 notes will be listed on the FMDQ Exchange.
In the statement. Chief Executive Officer, MTN, Ferdinand Moolman, explained that the commercial paper issuance was 400% subscribed, with active participation from individuals, institutional investors. The investors included pension fund administrators, asset managers, and other corporate firms and other financial institutions.
Moolman said; “The N100 billion issued is the largest commercial paper issuance by a Nigerian corporate, it allows us to broaden our sources for funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.”
What MTN Nigeria plans to use the proceeds for? The proceeds from the MTN Nigeria Communications Commercial paper issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.
Chapel Hill Denham Advisory Limited acted as the arranger and dealer of this successful Commercial Paper Issuance recorded in Nigeria’s debt market.
