MTN Nigeria Issues N127b Series 1 & 2 Commercial Paper

Posted on April 25, 2022


MTN Nigeria Communications Plc has announced the issuance of N127 billion Series 1 & 2 Commercial Paper under its registered N150 billion Commercial Paper Programme.

In a notification Monday sent to the Nigerian Exchange Limited and the investing public, the Company said the issuance comprised two tenors – a 184-day Serie issuance priced at a 7.50% yield and a 254-day Series 2 issuance priced at an 8.50% yield.

The company added that the issuance is in line with its strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes.

Speaking at the signing ceremony of the bond, MTN Nigeria CEO, Olukotun Karl Toriola said, “We are delighted to have successfully concluded what will go into the record books as the largest Commercial Paper issuance in Nigeria. The success of our CP Issuance is a clear demonstration of the strength and acceptance of the MTN brand, and the trust placed by the investor community in our company’s leadership, strong financial performance and corporate strategy.

“Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having just been granted final approval by the Central Bank of Nigeria for Momo Payment Service Bank Limited to commence operations license, this landmark issuance represents yet another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.

According to MTN Nigeria boss, Stanbic IBTC Capital Ltd served as the Lead Arranger and Dealer for the deal, while Chapel Hill Denham Advisory Ltd additionally helped to rearrange the deal, alongside Coronation Merchant Bank, FBNQuest Merchant Bank, Standard Chartered Capital and Advisory Nigeria Ltd, FSDH Capital and UCML Capital.

Toriola said; “First and foremost, we thank our customers and the investor community for their continued support and confidence in the MTN brand and all it stands for. We thank Stanbic IBTC Capital, our Lead Arranger and Dealer on this landmark CP Issuance, and our Joint Dealers – Chapel Hill Denham, Coronation Merchant Bank, FBNQuest Merchant Bank, FSDH Capital, Standard Chartered and UCML Capital.

“We also thank all other professional parties to the transaction, who worked tirelessly to ensure its timely and successful completion and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short term funding via the issuance of commercial papers.”

The commercial paper is an unsecured, short-term debt instrument generally utilized by firms to boost capital from the general public and handle their short-term monetary liabilities.

The most maturity date for a commercial paper is usually 270 days.

With MTN Nigeria recent acquisition of the ultimate approval from the Central Bank of Nigeria to start working Momo Payment Service Bank Ltd in the country, analyst thus opines that the leading communication company will be needing some working capital to facilitate the brand new enterprise.

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