Modupe Gbadeyanka
By Modupe Gbadeyanka
The management of MTN Group Limited is planning to issue bonds worth N400 billion (about $1.1 billion) later this year.
Proceeds from the exercise would be used to fund the company’s investments in Nigeria and replace its existing debt.
Chief Financial Officer (CFO) of MTN Group, Mr Ralph Mupita, informed Bloomberg in an interview recently that, “We want to gear up our debt on an operational level away from the holding structure.”
He explained in the interview that, “The debt must be where the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is and we want to raise as much as possible in local currency.”
MTN’s net debt rose to 57 billion rand ($4.5 billion) in 2017 from 52 billion rand the previous year and the Johannesburg-based company plans to shift its focus from dollar-denominated debt to debt in local currencies where it operates.
MTN also recently raised money in local currency for its Ghanaian and Ivory Coast operations, according to Bloomberg data.
Its shares declined 0.6 percent Wednesday, on a day that United States President, Mr Donald Trump, reinstated economic sanctions on Iran, the company’s second-biggest market. The carrier is valued at 234 billion rand.
MTN plans to list its Nigerian unit on the trading floor of the Nigerian Stock Exchange (NSE) before the end of 2018.
