By Dipo Olowookere
Leading telecommunications firm, MTN Nigeria Plc, has approached the capital market to borrow N100 billion via the sale of commercial papers to investors.
Subscription for the debt instrument commenced last Monday and ended today, Monday, August 21, 2023.
The company, which also provides financial services to its customers, issued the commercial papers in two series.
The first has a tenor of 181 days issued at a discount rate of 10.88 per cent and an implied yield of 11.50 per cent, while the second has a maturity of 265 days offered at a discount rate of 11.25 per cent and an implied yield of 12.25 per cent.
The Naira-denominated commercial paper is to be issued by MTN Nigeria under its N150 billion commercial paper programme, with proceeds to be used to “finance working capital” and general corporate purposes.
This is not the first time MTN Nigeria, which boasts the largest subscribers in Nigeria, is running to the capital market to source funds from investors.
This just-concluded exercise is the sixth and seventh of the series of commercial paper issuances of the organisation.
MTN Nigeria has about 41 million active data users and 7 million active fintech users, driving digital and financial inclusion in a young and fast-growing population.
According to its half-year results for 2023, it has over 77.1 million mobile subscribers across the country and is well-positioned for the long term with unmatched investments in infrastructure.
