MTN Nigeria Bolsters Short-Term Funding with N42.2 Billion Commercial Paper Issuance
MTN Nigeria Communications Plc, a leading telecommunications provider in Nigeria, has successfully secured N42.2 billion in short-term funding through the issuance of Series 15 and 16 Commercial Papers (CPs). This transaction, completed on December 23, 2024, forms part of the company’s broader N250 billion Commercial Paper Issuance Programme, demonstrating its proactive approach to managing working capital requirements and leveraging favorable market conditions. The successful issuance underscores investor confidence in MTN Nigeria’s robust business model, strong financial performance, and experienced management team.
The Series 15 and 16 CPs were issued with maturities of 180 days and 270 days, respectively, carrying yields of 27.50% and 29.00%. These competitive yields reflect the prevailing market interest rates and MTN Nigeria’s creditworthiness. The issuance attracted substantial investor interest, further solidifying the company’s position as a preferred investment destination within the Nigerian capital market. The proceeds from this CP issuance will be strategically allocated to address the company’s short-term working capital needs, ensuring smooth operations and supporting ongoing investments in network infrastructure and service enhancements.
This latest fundraising initiative builds upon the successful completion of two prior CP issuances within the past two months, showcasing MTN Nigeria’s consistent access to capital markets and its ability to efficiently raise funds. The company’s proactive approach to financial management allows it to seize opportunities for optimizing its funding mix and maintain financial flexibility. This consistent engagement with the capital market also reinforces MTN Nigeria’s commitment to transparency and its strong relationships with investors.
Karl Toriola, CEO of MTN Nigeria, expressed gratitude for the successful transaction, highlighting the unwavering support of the investor community and the expertise of the financial advisors. This achievement reflects not only the market’s confidence in MTN Nigeria’s financial strength but also the company’s commitment to maintaining strong communication and engagement with investors. The successful CP issuance further strengthens MTN Nigeria’s financial position and provides the necessary resources to execute its strategic growth plans.
Stanbic IBTC Capital Limited played a pivotal role as the arranger and manager of the transaction, while a consortium of reputable financial institutions, including CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited, acted as joint dealers. The involvement of these prominent financial institutions further validates the significance and credibility of the transaction.
MTN Nigeria’s proactive approach to financial management, coupled with its strong market position and investor confidence, positions the company for continued success in the dynamic telecommunications landscape. The company’s focus on optimizing its funding mix and securing favorable terms for its financing activities contributes to its overall financial stability and supports its long-term strategic objectives. This successful CP issuance not only bolsters the company’s short-term liquidity but also reinforces its reputation as a well-managed and financially sound organization.
