MTN Nigeria Raises N72.1 Billion Through Its 266-Day Commercial Paper

[Amazin Zion]

MTN Nigeria Communications (MTNN) has announced that it has raised N72.1 billion through its 266-day commercial paper (CP).

In November, MTN Nigeria Communication Plc, Nigeria’s biggest telecom sector of up to N72.1 billion series 10 commercial paper notes under its N250 billion commercial paper issuance programme.

Commercial Paper (CP) is a short-term debt instrument issued by corporations, financial institutions, and sometimes the government to raise funds for their working capital and short-term financial needs. CPs are typically unsecured and have maturities ranging from a few days to one year.

The company, in a notice on the Nigerian Exchange, said,

• MTN Nigeria Communications hereby notifies the investing public of the successful completion of its series 10 commercial paper issuance under its upsized N250 billion Commercial Paper Issuance Programme.
• MTN Nigeria sought to raise N72.1 billion, and the offer recorded 149 percent subscription with N72.1 billion issued.
• The 266-day commercial paper was issued on November 29, 2023, at a yield of 16 percent. The CP issuance aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt. The proceeds will be applied towards short-term working capital requirements.

Speaking on the achievement, the Chief Executive Office of MTN Nigeria said: “We are pleased with the support received from the investor community, having recorded a 149 percent subscription from a broad range of investors. This reflects MTN Nigeria’s robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates.”

Read more: https://www.investingport.com/mtn-nigeria-raises-n721-billion-through-its-266-day-commercial-paper/