MTN Nigeria Issues Record N127bn Series 1&2 Commercial Paper

MTN Nigeria has successfully signed a N127bn Series 1&2 commercial paper issuance, the company has disclosed.

MTN disclosed in a statement that the deal is under its registered N150bn commercial paper.

The telecom firm revealed that the issuance comprised two tenors- a 184-day series issuance priced at a 7.50 per cent yield and a 254-day Series 2 issuance priced at an 8.50 per cent yield.

“The issuance is in line with the company’s strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes,” MTN said.

N127bn commercial paper would help improve customer’s services as well as assist funding for its 5G deployment.

Based on the arrangement, Stanbic IBTC Capital Limited acted as the lead arranger and dealer.

Also, 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.

Speaking at the signing ceremony in Lagos, the Chief Executive Officer, MTN NigeriaCommunication, Mr Karl Toriola said the issuance reflects the company’s goodwill in the industry.

He said, “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 MTN Nigeria’s our company’s leadership, strong financial performance and corporate strategy.

“Having recently emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having recently just being been granted final approval by the Central Bank of Nigeria (CBN) for Momo Payment Service Bank Limited to commence operations license, this landmark issuance represents yet another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.”