MTN Nigeria has successfully raised N52.9 billion as it completed Series 8 & 9 of its N20 billion commercial paper issuance programme.
Per documents from the NGX website acquired by Nairametrics, MTN Nigeria aimed to raise a total of N52,895,846,000 through both series, and the offer was fully subscribed by investors. It is also noted that the 182-days commercial papers were issued with a yield of 14.00% and the 267-day commercial papers were issued with a yield of 16.00%. The issuance was completed on November 7.
MTN Nigeria’s CEO, Karl Toriola noted,
- “We are grateful for the success of this transaction which demonstrates investor confidence in the performance and management of MTN Nigeria. The market terrain is changing and managing our funding costs is a key focus.
- “The transaction was concluded in record time and this could not have been possible but for the unwavering support of our advisers and the investor community.”
What you should know
MTN announced a N150 billion commercial paper programme on April 7, 2022, however, the figure was revised to N250 billion on August 22, 2023, as it sought to reduce its debt cost and diversify its funding sources.
The company earlier raised N125 billion on August 30, 2023, in Series 6&7 of its commercial paper issuance.
In the face of rising finance costs due to rising interest rates, Nigerian companies have turned to the bond market to raise funds. For example, Dangote Cement Plc also seeks to raise N300 billion through a 9-series commercial paper issuance programme.