MTN Nigeria Raises N52.9 Billion in Commercial Paper Issuance
In a successful completion of its Series 8 & 9 under the N20 billion commercial paper issuance program, MTN Nigeria has raised an impressive N52.9 billion. The offering, fully subscribed by investors, saw the issuance of 182-day commercial papers with a yield of 14.00% and 267-day commercial papers with a yield of 16.00%. The transaction was finalized on November 7, according to documents from the NGX website as reported by RateCaptain.
Karl Toriola, the CEO of MTN Nigeria, expressed gratitude for the investor confidence in the company’s performance and management. Toriola emphasized the changing market terrain and the company’s focus on managing funding costs.
Toriola stated, “We are grateful for the success of this transaction which demonstrates investor confidence in the performance and management of MTN Nigeria. The market terrain is changing, and managing our funding costs is a key focus. The transaction was concluded in record time, and this could not have been possible but for the unwavering support of our advisers and the investor community.”
The N52.9 billion raised is part of MTN Nigeria’s larger N250 billion commercial paper program, which was initially announced as a N150 billion program on April 7, 2022. The company revised the figure on August 22, 2023, with the aim of reducing its debt cost and diversifying funding sources.
This success follows MTN Nigeria’s earlier achievement of raising N125 billion on August 30, 2023, in Series 6&7 of its commercial paper issuance. The company’s strategic move aligns with a broader trend among Nigerian companies seeking funds in the bond market to address rising finance costs amid increasing interest rates. Notably, Dangote Cement Plc is also set to raise N300 billion through a 9-series commercial paper issuance program.
