By Aduragbemi Omiyale
Commercial papers worth N100 billion are being offered for sale to high-net-worth and institutional investors by MTN Nigeria Communications Plc.
The exercise is an offshoot of the N200 billion CP programme of the telecommunications leader in Africa and it is the third and fourth series.
Subscription for the CP sale commenced on Thursday and would conclude next week, precisely on Wednesday, March 17, 2021, with the settlement date fixed for Friday, March 19, 2021.
A notice obtained by Business Post indicated that the series III is with 180 days maturity at a coupon rate of 4.65 per cent to 4.85 per cent, while the series IV with 270 days tenor comes with a coupon rate of between 5.55 per cent and 5.75 per cent.
The arranger for the transaction, Chapel Hill Denham Advisory Limited, disclosed that the minimum subscription is N1 million, while proceeds from the exercise would be used for working capital and general corporate purposes of the company.
MTN Nigeria is one of the major arms of the MTN Group and its contribution to the group’s revenue and profit is significant.
The telco is one of the leading network providers in the country and has a very strong subscriber base.
Shares of the company are listed on the Nigerian Stock Exchange (NSE) and the organisation is one of the most capitalised on the exchange.
Recall that in mid-2020, MTN Nigeria sold commercial papers worth N100 billion to investors in two tranches, with proceeds used for working capital as well as for general corporate purposes.
The offer was about 400 per cent subscribed, with active participation from a diverse orbit of the eligible individual and institutional investors, which include pension fund administrators, asset managers, corporates and other financial institutions.”
During the sale, the series I note with a 180-day tenor was with an effective yield of 4.90 per cent, while the series II note with 270-day maturity was with an effective yield of 5.95 per cent.
Adedapo Adesanya 
Modupe Gbadeyanka