Dipo Olowookere
By Dipo Olowookere
Information reaching Business Post is that investors, especially high-net worth individuals and institutional, are in last minute demand for the N23 billion worth of commercial papers to be issued by MTN Nigeria.
The telecommunications company informed the investing community this week that it intends to sell the papers to raise funds for its business operations.
The sale of the N23 billion commercial papers is part of the N150 billion CP programme of the telco giant. This exercise is the third series.
Subscription for the CP commenced on Wednesday, September 7, 2022, and will end on Monday, September 12, 2022.
Stanbic IBTC Capital Limited is the arranger of the transaction, with other top investment firms appointed as the dealers.
Information gathered from a few of them indicated that investors are showing significant interest in the exercise and are making efforts to partake in it because of the confidence they have in the firm.
“We have been witnessing an increase in the demand for the MTN commercial papers, especially today (Friday),” a source from one of the dealing firms told this newspaper in confidence.
MTN Nigeria is offering the paper in 184-day tenor and the minimum subscription is N5 million and N1 million thereafter. The yield is expected to be in double-digit.
The ability of the company to repay the debt is never in doubt as it is the leading GSM network service provider in Nigeria, with the largest number of subscribers.
The company also offers financial services in Nigeria through its MoMo services and recently, it announced the introduction of 5G services in Lagos and Abuja. It immediately began the sale of 5G routers, which must be pre-ordered.
MTN Nigeria is offering 5G network in Nigeria after emerging one of the two winners of the 3.5 GHz spectrum band auction by the Nigerian Communications Commission (NCC).
