MTN Nigeria Communications PLC has announced to shareholders and the Nigerian Exchange (NGX) the successful completion of its Series 13 and 14 Commercial Paper (CP) issuance, raising N72.18 billion.
This achievement follows the company’s earlier notification to the NGX regarding the successful issuance of Series 11 and 12 Commercial Papers, which collectively raised N75.1 billion.
Building on this momentum, MTN Nigeria has disclosed the latest success of its Series 13 and 14 issuances in a formal notification signed by its Company Secretary, Uto Ukpanah FCIS, and published on the NGX disclosure platform.
According to the announcement, the Series 13 and 14 CP offerings were conducted under the company’s N250 billion Commercial Paper Issuance Programme.
Initially targeting N50 billion, the offering was oversubscribed by an impressive 144%, resulting in a final issuance of N72.18 billion.
What to know:
- MTN Nigeria successfully raised funds through two commercial papers under its N250 billion Commercial Paper Issuance Programme.
- The Series 13 and 14 Commercial Papers, issued on Friday, November 29, 2024, offered competitive yields of 27.50% for the 181-day paper and 29.00% for the 265-day paper to attract a diverse range of investors.
- This latest issuance builds on the success of MTN Nigeria’s Series 11 and 12 Commercial Papers issued on November 7, 2024, which raised N75.1 billion.
- Initially targeting N50 billion for the Series 13 and 14 issuances, the offer recorded an impressive 144% oversubscription, resulting in a total issuance of N72.18 billion.
- Stanbic IBTC acted as the Lead Arranger and Dealer, with CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank as Joint Dealers.
Comments from CEO
Commenting on the development, MTN Nigeria’s Chief Executive Officer, Karl Toriola, expressed his delight and gratitude for the overwhelming support from the investor community.
He remarked, “We are pleased with the support received from the investor community, having recorded 144% subscription with participation from a broad range of investors.”
Toriola went on to highlight that the remarkable level of subscription underscores the confidence investors have in MTN Nigeria’s financial stability, the strength of its brand, and its dominant position in the market.
He noted that achieving such results amidst challenging macroeconomic conditions further demonstrates the resilience and appeal of the company’s operations and growth strategy.
Backstory
- On November 15, 2024, MTN Nigeria Communications PLC formally announced to the Nigerian Exchange (NGX) and the investing public the successful completion of its Series 11 and 12 Commercial Paper issuances, raising an impressive total of N75.18 billion.
- Initially targeting N50 billion, the offering exceeded expectations with a remarkable 150% subscription rate, underscoring strong investor confidence.
- This achievement is part of MTN Nigeria’s N250 billion Commercial Paper Issuance Programme, which is structured to raise capital in series to support its operational and strategic goals.
- According to the company, proceeds from the issuance will be allocated to driving operational efficiency and advancing growth initiatives.
- Key priorities include expanding critical infrastructure, enhancing service delivery, and addressing the rapidly growing demand for telecommunications services across the country.