MTN to apply proceeds of N100bn CP programme to corporates

0

MTN Nigeria has successfully raised N100 billion through the issuance of Commercial Paper (CP).

Indeed, the company has notified the Nigerian Stock Exchange (NSE) and the investing public.

The telco company stated that the CP was in two series, while adding that it priced the Series I 180 CP at an effective yield of 4.90 per cent for a N20 billion size, while the Series II 270 day CP sized at N80 billion was said to have cleared at an effective rate of 5.9 per cent.

According to a statement from the Company Secretary, Uto Ukpanah, MTN had initially set out to issue up to N50 billion under the N100 billion CP Programme but, at the conclusion of the book build, the CP Issuance was 400 per cent subscribed.

“Given the significantly over-subscribed book, MTN Nigeria opted to issue up to the N100 billion limit of the registered CP Programme, with active participation from a diverse orbit of eligible individual and institutional investors, which include pension fund administrators, asset managers, corporates and other financial institutions.

The level of interest in MTN Nigeria’s debut in the Nigerian Debt Markets (as measured by the volume and value of bids), is a strong reflection of investor confidence in MTN Nigeria’s ability to continue to deliver on its strategic objectives and maintain market leadership, as well as the strong credit profile that supports the Company’s ability to meet its debt service obligations. The proceeds from the CP would be used to support MTN Nigeria’s working capital and general corporate purposes,” the statement said.

See also  Jorge Lorenzo won't change riding style for Ducati MotoGP bike

Commenting at the successful CP issuance, the Chief Executive Officer, MTN, Nigeria, Ferdinand Moolman, said it was the largest commercial paper issuance recorded in Nigeria’s corporate history.

He added: “The N100 billion issued is the largest commercial paper issuance by a Nigerian corporate, it allows us to broaden our sources for funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.”


LEAVE A REPLY

Please enter your comment!
Please enter your name here