MTN Nigeria Communications PLC has announced the successful conclusion of its Series 15 and 16 Commercial Paper (CP) issuance, raising a total of N42.20 billion under its N250 billion CP Issuance Programme. This achievement highlights the company’s continued ability to attract investor confidence amidst a dynamic financial landscape.
The issuance comprised 180-day and 270-day commercial papers, issued at competitive yields of 27.50% and 29.00%, respectively. The official issuance date was Monday, December 23, 2024. According to MTN Nigeria, the proceeds from the CP issuance will be used to support the company’s short-term working capital needs, aligning with its broader financial strategy.
This successful transaction follows two other CP issuances by the telecom giant in the past two months, further emphasizing MTN Nigeria’s consistent engagement with the capital market to optimize its liquidity and funding framework.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, expressed his gratitude for the overwhelming investor response. “We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team. The CP issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community and our advisers,” he said.
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Stanbic IBTC Capital Limited served as the Arranger and Dealer for this transaction, while CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited acted as Joint Dealers.
The issuance reflects MTN Nigeria’s commitment to maintaining a strong financial position while fulfilling its operational objectives. By leveraging the CP Issuance Programme, MTN Nigeria has demonstrated its proactive approach to managing liquidity and optimizing costs, ensuring the sustainability of its business model.
MTN Nigeria’s ability to secure funding at such scale is a testament to its robust financial performance, sound governance, and the telecom sector’s resilience. As one of the largest telecom operators in Nigeria, the company continues to play a pivotal role in driving digital inclusion and connectivity across the country.
This milestone further solidifies MTN Nigeria’s position as a trusted entity in the Nigerian capital market, paving the way for future issuances and strengthening its reputation among institutional investors.
