MTN applies to SEC for 2nd N200bn bond issuance, clarifies 2021 tax remittance

BY Chisom Nwatu

Telecommunication giant MTN has applied to the Securities and Exchange Commission (SEC) in respect of the registration of a new N200 billion Bond Issuance Programme (Second Bond Issuance Programme).

This development follows the successful 200bn debut bond issuance programme in 2021.

In a filing with the NGX, MTN said the second issuance programme is a follow-up to the successful N200bn debut bond issuance programme in 2021 under which the company issued the N110bn 13 percent 7-year series I bond due 2028 and N90bn 12.75 percent 10-year series II bonds due 2031.

The company noted that it will decide on issuances under the second issuance programme subject to prevailing market conditions and obtaining relevant regulatory approvals, adding that the bond would be used for capital expenditure (network expansion), working capital management and general corporate purpose.

MTN has also clarified that it made a total contribution of up to N757.7 billion to the federal government and its relevant agencies through taxes, levies, fees and duties in 2021.

The company made the clarification in relation to media reports that it paid the sum of N618.7 billion in both direct and indirect taxes to the Federal Inland Revenue Service (FIRS) in 2021.

However, MTN noted in the filing with the NGX that direct remittances by the company to FIRS in 2021 was N291.7bn while the balance represents VAT, levies, fees and duties paid to other government agencies.