MTN Nigeria Plans To Raise N23bn From Capital Market Investors

MTN Nigeria, a leading telecom services provider has announced plans to engage Nigerian capital market investors as it prepares to raise up to N23 billion ($54 million) through its Series-3 Commercial Paper notes.

The proposed issuance of the $54-million short-term debt facility will bring the group’s N150-billion ($352.3 million) commercial paper issuance program to a close, with the aim of diversifying its financing structure and options.

The issuance is a follow-up to the N127 billion ($298.3 million) that the group secured from its Series-1 and -2 Commercial Paper notes in April as part of its registered N150 billion ($352.3 million) Commercial Paper program.

The net proceeds from the commercial paper issuance, according to the notification seen on the Nigerian Exchange, will be used for working capital and general corporate purposes, as the telecom services provider prepares to free up cash from its core operations for further expansion.

With about 69 million people connected across the country, MTN Nigeria is one of Africa’s largest telecom service providers. Its 4G network now covers 70 percent of the population, up from 60 percent in December 2020.

The company is the most profitable subsidiary of MTN Group, a multinational telecom conglomerate with operations in 20 African and Middle Eastern countries.

It is led by Group CEO Karl Toriola.

MTN Nigeria posted a 28.1-percent increase in profit in the first six months of 2022, up from N141.83 billion ($333.1 million) in the first six months of 2021 to N181.63 billion ($426.6 million) under the leadership of Toriola, who has been at the helm since 2020.

The robust financial performance was driven by a 7.6-percent increase in mobile subscribers to 74.1 million, a 13.2 percent-increase in active data users to 36.8 million, and an 87.3-percent increase in active fintech subscribers to 11.5 million.