MTN Nigeria considers N23bn Commercial Paper Issuance

By Rosemary Iwuala

MTN Nigeria Communications Plc has proposed the issuance of up to N23 billion series 3 Commercial Paper (CP) notes under its N150 billion CP issuance programme.

The telecommunication giant announced the plans on the floor of the Nigerian Exchange Limited (NGX).

Commercial Paper (CP) is an unsecured debt instrument issued typically for the financing of a firm’s short-term liabilities.

The company, in a notification signed by Uto Ukpanah, its company secretary, said the issuance is part of the company’s strategy to diversify its financing options with the funds deployed towards working capital and general corporate purposes.

MTN Nigeria had earlier issued a historic N127 billion Series 1 & 2 CP under its registered N150 billion programme. The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50 percent yield and a 254-day Series 2 issuance priced at an 8.50 percent yield.

While speaking at the signing ceremony, Karl Toriola, CEO, MTN Nigeria Communications Plc, had said the N127 billion CP issuance would go into the record books as the largest CP issuance in Nigeria.

“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 company’s leadership, strong financial performance and corporate strategy,” he had said.