MTN Nigeria Communications PLC (MTN Nigeria) has officially announced its plan to issue up to N50 billion in Series 15 and 16 Commercial Papers under its N250 billion Commercial Paper Issuance Program. The company disclosed this on Monday to the Nigerian Exchange Limited and the investing public.
Following FX pressure that reduced its shareholders’ money to be worth less than their carrying value on the balance sheet, the company seeks to issue this third commercial paper.
“MTN Nigeria Communications PLC (‘MTN Nigeria’ or the ‘Company’) hereby notifies Nigerian Exchange Limited and the investing public of its proposed issuance of up to N50 billion Series 15 and 16 Commercial Paper notes under its N250 billion Commercial Paper Issuance Programme (the ‘Issuance’),” the telecom stated on Monday.
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This comes after the Series 13 and 14 issuances on November 29 raised an astounding N72.18 billion, 144 per cent more than the initial target of N50 billion.
Previous successful commercial papers
Strong investor confidence is demonstrated by MTN Nigeria’s recent experience with commercial papers.
With yields of 29.00 per cent for a 265-day tenor and 27.50 per cent for a 181-day tenor, the business released Series 13 and 14 papers on November 29. Due to the substantial oversubscription, the intended N50 billion offering raised N72.18 billion.
This came after Series 11 and 12 Commercial Papers were successfully issued on November 7 and brought in N75.1 billion.
CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank were among the joint dealers for the Series 13 and 14 issuances, with Stanbic IBTC serving as the principal arranger and dealer.
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Funds to support growth plans and operational efficiency
The money raised from these issuances would be used to fund growth plans and improve MTN Nigeria’s operational efficiency.
MTN Nigeria underlined in a formal statement its dedication to using the Commercial Paper Program to further both short-term and long-term goals.
Because the program is structured to generate money in phases, the business can adjust its capital structure to meet changing operating requirements.
Despite its successful fundraising efforts, MTN Nigeria encountered serious financial difficulties in 2024.