MTN raises N52.89bn through commercial papers

MTN Nigeria issued 182-day commercial papers at a yield of 14 per cent and 267-day commercial papers at a yield of 16 per cent. The CP Issuance was completed on Tuesday.

MTN raises N52.89bn through commercial papers

MTN raises N52.89bn through commercial papers

MTN Nigeria has raised N52.89bn from its Series 8 and 9 Commercial Paper issuance under its N250 billion Commercial Paper Issuance Programme.

This was revealed in a notice filed with the Nigerian Exchange Limited following the completion of the CPs.

Last Thursday, MTN announced the CPs, saying it was seeking to raise N52,895,846,000.00 across both series. The offer was fully subscribed to.

MTN Nigeria issued 182-day commercial papers at a yield of 14 percent and 267-day commercial papers at a yield of 16 percent. The CP issuance was completed on Tuesday.

In the statement, MTN Nigeria said that the “CP Issuance aligns with its strategy to reduce its average cost of debt and diversify its funding sources. The proceeds will be applied towards short-term working capital requirements.”

Speaking on the CP Issuance, MTN Nigeria’s Chief Executive Officer, Karl Toriola, said, “We are grateful for the success of this transaction which demonstrates investor confidence in the performance and management of MTN Nigeria. The market terrain is changing and managing our funding costs is a key focus.

“The transaction was concluded in record time and this could not have been possible but for the unwavering support of our advisers and the investor community.”
Stanbic IBTC Capital Limited played the role of Arranger and Dealer with ARM Securities Limited, Chapel Hill Denham Advisory Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital & Investments Limited, and Rand Merchant Bank Nigeria Limited playing the role of Joint Dealers on the transaction.

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