Just In: MTN Nigeria announces completion of N100bn commercial Paper

Just In: MTN Nigeria announces completion of N100bn Commercial Paper

MTN Nigeria Communications (MTNN) Plc on Tuesday announced the successful issuance of N100 billion Series I & II Commercial Paper (CP) notes.

MTNN stated this in a notice to the Nigerian Stock Exchange (NSE) and the investing public signed by Uto Ukpanah, its Company Secretary.

The company said that the Series I 180 day CP was priced at an effective yield of 4.90 per cent for a N20 billion size.

According to the statement, Series II 270 day CP sizes at N80 billion, clears at an effective yield of 5.95 per cent.

“We initially set out to issue up to N50 billion under the N100 billion programme but, at the conclusion of the bank bookbuild, the CP issuance was 400 per cent subscribed.

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“Given the significantly over-subscribed book, MTNN opted to issue up to the N100 billion limit of the registered CP programme,” it said.

It noted that the CP witnessed active participation from a diverse eligible individual and institutional investors such as pension fund administrators, asset managers and corporates, among others.

“The level of interest in MTNN’s debut in the Nigerian debt markets is a strong reflection of investor confidence in its ability to continue to deliver on its strategic objectives,” the statement added.

Mr Ferdinand Moolman, the company’s Chief Executive Officer, was quoted by the statement as saying that the N100 billion issued was the largest debut CP issuance by a Nigerian corporate entity.

Moolman said the CP would enable the company to broaden its sources of funding.

“It allows to broaden our sources of funding and combines established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.

“The proceeds from the issuance will be applied towards MTNN’s working capital and general corporate purposes.

“The Series I & II notes will be listed on the FMDQ Securities Exchange,” Moolman stated.

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