MTN Nigeria plans to raise N150bn in twin-series commercial papers

BY CHARLES ABUEDE

MTN Nigeria, which provides telecoms and mobile money services across Nigeria said it will raise up to N150 billion in commercial papers from the Nigerian capital market to further diversify its financing options with the proceeds from the sale of the CPs deployed towards working capital and corporate purposes.

In a statement filed to the Nigerian Exchange Limited (NGX) on Tuesday, the largest wireless carrier said the issuance of up to N150 billion Series 1 and 2 commercial papers is part of the company’s strategy for diversifying its financing options.

This planned issuance comes on the back of the telco giant’s issuance of its Series III (180-day tenor) and Series IV (270-day tenor) commercial paper under its N200 billion commercial paper issuance programme in 2021 that was done at a discount rate range of 4.6500 percent to 4.8500 percent, with an effective yield in the range of 4.7591 percent to 4.9688 percent for the 180-day paper. The 270-day tenor commercial paper was issued at the discount rate range of 5.5500 percent to 5.7500 percent with an effective yield in the range of 5.7333 percent to 6.0054 percent respectively.

The company however said further details on the proposed issuance (as well as subsequent issuances) will be communicated to the markets as they occur.