Dipo Olowookere
By Dipo Olowookere
MTN Nigeria Communications Plc has borrowed the sum of N125 billion from institutional and high-net-worth individuals (HNIs) in the capital market.
The telecommunication giant was lent the funds for its smooth business operations.
Recall that two weeks ago, it was reported that MTN Nigeria, the largest GSM network provider in the country, planned to raise N100 billion from commercial paper sales for operating expenses.
The company was seeking to borrow the funds shortly after it announced that it generated N2 trillion as revenue in a financial year, making it the first organisation in the country to achieve this feat.
In an update on the commercial paper issuance, MTN Nigeria said the exercise was oversubscribed by 25 per cent, raising an additional N25 billion.
This may have been influenced by the trust and confidence investors have in the company in its ability to repay the cheap loan.
In the disclosure, the firm stated that the shorter tenor of the paper, 188 days, was sold at a yield of 11.00 per cent, while the other, the 267-day paper, was priced at 12.50 per cent.
“MTN Nigeria Communications Plc hereby notifies the Nigerian Exchange (NGX) Limited and the investing public of the successful completion of its Series 4 and 5 commercial paper issuance under its N150 billion Commercial Paper Issuance Programme.
“MTN Nigeria sought to raise N100 billion, and the transaction was 125 per cent subscribed, with a total of N125 billion raised.
“MTN Nigeria issued 188-day commercial papers at a yield of 11.00 per cent and 267-day commercial papers at a yield of 12.50 per cent. The CP issuance was completed on March 1, 2023.
“The CP issuance is part of MTN Nigeria’s strategy to diversify its funding options. The proceeds will be utilised for its short-term working capital and funding requirements,” the notice signed by the company secretary, Uto Ukpanah, stated.
