Nigeria’s first telecom bond issued as FMDQ lists MTN’s N110bn senior
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Nigeria’s first ever telecommunication bond has been issued by telecommunication giant, MTN Nigeria.
MTN Nigeria, the country’s biggest telecommunication company, Tuesday had its N110 billion Series 1 senior unsecured fixed rate bond successfully listed on the FMDQ OTC Securities Exchange.
The listed bond was issued under the company’s N200 billion Bond Issuance Programme, which was sponsored by Chapel Hill Denham Advisory Limited, MTN Nigeria said in a statement.
The premier provider of connectivity, communication and collaboration solutions, and the largest privately owned mobile operator in Africa, Europe, and the Middle East, said the issue was approved by the FMDQ Exchange after following the due diligence of the OTC market’s Board Listings and Markets Committee.
Karl Toriola, MTN Nigeria’s chief executive officer, while commenting on the successful listing said, “We are very proud of this landmark transaction, which is the first ever telecommunication bond issued in Nigeria and the largest corporate bond issuance in 2021.
“The Nigerian debt capital market has given us the opportunity to diversify our funding sources further and enabled us to extend the maturities of our debt portfolio to match infrastructure investments.
“Investors’ strong support for this transaction, given the challenging economic environment, is a reflection of their confidence in MTN Nigeria’s long-term strategy, the management team, the depth of the market, and the overall growth in the telecommunications industry, and we do appreciate the support,” Toriola said.
However, the listing of the bond by the leading telecoms giant and approval for admission by the FMDQ Listing Committee to its platform is reflective of the potential of the Nigerian Debt Capital market and demonstrates the commendable confidence level of both issuers, investors, and validates the efficient processes and integrated systems through which FMDQ Group has sustained its service delivery to the market and its diverse stakeholders.
Also speaking on the listing, Bolaji Balogun, chief executive officer of Chapel Hill Denham, the sponsor of the bond and a registration member (listings) of the exchange, said, “The firm is honoured to have led the successful Series 1 bond issuance of N110 billion working with the six (6) joint issuing houses.
“The Series 1 bond was oversubscribed and strongly supported by robust demand from over two hundred (200) investors, which included pension funds & asset managers, banks, family offices and high net-worth individuals. This issuance is the largest corporate debt transaction this year and its success demonstrates MTN Nigeria’s strong credit profile, leading position in the market as well as its long-term prospects,” he said.