MTN Nigeria Communications PLC has increased its working capital by raising N127 billion through a commercial paper program.
The Nigerian Exchange Limited and the investing public have been notified of the company’s N127 billion Series one and two Commercial Paper issuances under its registered N150 billion Commercial Paper Programme.
Commercial Paper is an unsecured short-term debt instrument that corporate entities use to finance working capital and pay down short-term debt.
The Issuance featured two tenors: a 184-day Series one offering priced at 7.50 percent and a 254-day Series two offering priced at 8.50 percent. Stanbic IBTC Capital Limited served as the Lead Arranger and Dealer, with Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Capital Limited, Standard Chartered Capital & Advisory Nigeria Limited, and UCML Capital Limited serving as Joint Dealers.
The company stated that the offering is consistent with its strategy of diversifying its financing sources, with the proceeds being used for working capital and general corporate purposes.
At the fund’s signing ceremony, MTN Nigeria’s chief executive, Mr. Karl Toriola, stated, “we are delighted to have successfully concluded what will go down in history as Nigeria’s largest Commercial Paper issuance.” The success of our CP Issuance demonstrates the brand’s strength and acceptance, as well as the investor community’s confidence in our company’s leadership, strong financial performance, and corporate strategy.
“Having been one of two winners in the Nigerian Communications Commission’s recent 5G spectrum auction and having recently received final approval from the Central Bank of Nigeria for Momo Payment Service Bank Limited to commence operations, this landmark issuance represents yet another step toward MTN Nigeria cementing its leadership position in the Nigerian telecommunications sector.”
