MTN Nigeria Raises N42.2 Billion via Series 15 and 16 Commercial Papers

MTN Nigeria (Image Credit: Techeconomy)

MTN Nigeria Communications PLC has notified the NGX and the investing public that it has successfully raised N42.20 billion through the issuing of its Series 15 and 16 Commercial Papers (CP).

The successful offering of Series 13 and 14 Commercial Papers, which raised a total of N72.18 billion, was previously announced.

MTN Nigeria announced the effective completion of the Series 15 and 16 issuances in a formal notification posted on the NGX transparency platform and signed by Company Secretary Uto Ukpanah.

With an 84.4% subscription rate, these products were made possible by MTN Nigeria’s N250 billion Commercial Paper Issuance Program.

What To Note

Two commercial papers were used by MTN Nigeria to raise money for their N250 billion initiative.

The December 23, 2024, issuance of the Series 15 and 16 offers attracted a variety of investors with yields of 27.50% for the 181-day paper and 29.00% for the 270-day paper.

The successful Series 13 and 14 papers from November 29, 2024, which generated N72.18 billion, were followed by this offering.

The Series 15 and 16 issuances, which had an initial subscription target of N50 billion, ended up achieving 84.4%, or N42.20 billion.

With assistance from Joint Dealers such as CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank, Stanbic IBTC was the Lead Arranger and Dealer.

The CEO’s remarks

Karl Toriola, the CEO of MTN Nigeria, expressed his excitement and gratitude for the most recent fundraising success.

“We are appreciative of this transaction’s success, which highlights investor trust in MTN Nigeria’s business model and management team,” he said.

“The Commercial Paper Issuance is a crucial part of our established funding strategy and would not have been possible without the unwavering support of our advisors and the investor community,” he added.

Background

Through its N250 billion Commercial Paper Issuance Programme, a strategic effort created to support its operational and business objectives, MTN Nigeria has been actively raising money.

An 84.4% subscription rate for the most recent Series 15 and 16 offerings indicates continued investor interest.

The business successfully introduced Series 13 and 14 Commercial Papers on November 29, 2024, with yields of 29.00% for the 270-day tenor and 27.50% for the 181-day tenor.

These issuances were initially intended to raise N50 billion, but due to enormous demand, there was a 144% oversubscription, ultimately raising N72.18 billion.

MTN Nigeria further proved its strong investor appeal on November 7 of same month when it issued Series 11 and 12 Commercial Papers, raising N75.1 billion.

[bravepop id="205917" align="center"]
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments