MTN Nigeria Communications Plc has successfully raised ₦42.2 billion through its Series 15 and 16 commercial paper (CP) issuances, part of its ₦250 billion Commercial Paper Issuance Programme.
According to a recent disclosure by the company secretary, Uto Ukpanah, to the Nigerian Exchange Limited, the telecommunications giant issued 180-day and 270-day CPs with yields of 27.50% and 29.00%, respectively. The issuance, dated December 23, 2024, follows two successful CP transactions completed in the last two months.
The proceeds from this issuance will be directed toward MTN Nigeria’s short-term working capital needs, reinforcing the company’s commitment to maintaining operational efficiency.
Investor Confidence in MTN Nigeria
MTN Nigeria’s Chief Executive Officer, Karl Toriola, highlighted the importance of investor support in the success of the transaction. “The success of this transaction underscores investor confidence in MTN Nigeria’s business model and management team. This issuance is a critical component of our funding strategy, and we deeply appreciate the support from our investors and advisers,” Toriola stated.
Key Players in the Transaction
The transaction was led by Stanbic IBTC Capital Limited as the arranger, with additional joint dealers including CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited.
Looking Ahead
The successful Series 15 and 16 issuances build on MTN Nigeria’s ongoing efforts to leverage the capital market for its funding needs. Earlier, the company announced plans to issue up to ₦50 billion in Series 11 and 12 commercial papers under its ₦250 billion programme, signaling its strategic approach to sustainable growth and financial stability.
This milestone highlights MTN Nigeria’s ability to attract strong investor confidence, reinforcing its position as a leading player in the telecommunications sector and the Nigerian capital market.
