Aduragbemi Omiyale
By Aduragbemi Omiyale
The sum of N72.1 billion has been obtained by MTN Nigeria Communications Plc from some capital market investors in Nigeria through the sale of commercial paper.
The leading telco in the country sold the debt instrument to subscribers a few weeks ago under its revised N250 billion commercial paper programme.
According to a notice filed by MTN Nigeria to the Nigerian Exchange (NGX) Limited over the weekend, the exercise, which was conducted on November 29, 2023, recorded a subscription rate of 149 per cent.
The company said this appetite for its debt instrument reflects its “robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates.”
It was the 10th series of the commercial paper salles by MTN Nigeria and it came with a maturity of 266 days, sold at a yield of 16 per cent, with the proceeds to be used for the organisation’s short-term working capital requirements.
Business Post reports that Stanbic IBTC Capital Limited was the arranger and dealer of the transaction, while ARM Securities Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital & Investments Limited, Rand Merchant Bank Nigeria Limited and Vetiva Capital Management Limited were the joint dealers.
Commenting on the exercise, the chief executive of MTN Nigeria, Mr Karl Toriola, said, “We are pleased with the support received from the investor community having recorded a 149 per cent subscription from a broad range of investors.
“This reflects MTN Nigeria’s robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates.”
This newspaper reports that series 10 commercial paper issuance of MTN Nigeria aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt.
