MTN Nigeria secures ₦127 billion in largest commercial paper issuance
Summary
MTN Nigerias new funding is in accordance with the companys strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes.MTN Nigeria Communications PLC has raised 127 billion Series 1 & 2 Commercial Paper Issuance (the Issuance) under its registered 150 billion Commercial Paper Programme. This makes the issuance Nigerias biggest commercial paper raise.Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities. Maturities on commercial paper typically last several days, and rarely range longer than 270 days.Expressing his pleasure in a statement made available to the public, MTN Nigeria CEO Olukotun Karl Toriola stated in the ceremony, We are delighted to have successfully concluded what will go into the record books as the largest Commercial Paper issuance in Nigeria.He continued that the success of our CP Issuance is a clear demonstration of the strength and acceptance of the MTN brand, and the trust placed by the investor community in our companys leadership, strong financial performance and corporate strategy.The Issuance comprised two tenors a 184-day Serie issuance priced at a 7.50% yield and a 254-day Series 2 issuance priced at an 8.50% yield. Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer, while Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Capital Limited, Standard Chartered Capital & Advisory Nigeria Limited and UCML Capital Limited acted as Joint Dealers.The Issuance is in line with the Companys strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes.CEO Toriola continued, Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having just been granted final approval by the Central Bank of Nigeria for Momo Payment Service Bank Limited to commence operations licence, this landmark issuance represents yet another step towards our cementing MTN Nigerias leadership in Nigerias telecommunications sector.First and foremost, we thank our customers and the investor community for their continued support and confidence in the MTN brand and all it stands for. We thank our lead arranger, joint dealers and all other professional parties to the transaction, who worked tirelessly to ensure its timely and successful completion and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short term funding via the issuance of commercial papers.MTN Nigeria, is one of Africas largest providers of communications services, connecting approximately 69 million people in communities across the country with each other and the world.MTN Nigeria a part of the MTN Group is a multinational telecommunications group, which operates in 19 countries in Africa and the Middle East.