MTN announces issuance of largest Commercial Paper in Nigeria

Written by on April 25, 2022

MTN Nigeria Communications Plc on Monday announced it has issued N127 billion series 1 &2 commercial paper under its registered N150 billion commercial paper programme.

The company made this announcement in a public notice signed by Uto Ukpanah, Company Secretary, MTN Nigeria, on Monday.

According to the statement, the issuance comprises two tenors. A 184-day Series priced at a 7.50% yield and a 254-day Series 2 priced at 8.50% yield.

MTN Nigeria said the issuance is in line with its strategy to diversify financing options. The company further stated that the proceeds will be deployed towards its working capital and for general corporate purposes.

Karl Toriola, Chief Executive, MTN Nigeria, speaking at the signing ceremony said: “We are delighted to have successfully concluded what will go into the record books as the largest Commercial Paper issuance in Nigeria. The success of our CP Issuance is a clear demonstration of the strength and acceptance of the MTN brand, and the trust placed by the investor community in our company’s leadership, strong financial performance and corporate strategy.

“Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having just been granted final approval by the Central Bank of Nigeria for Momo Payment Service Bank Limited to commence operations license, this landmark issuance represents yet another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.

“First and foremost, we thank our customers and the investor community for their continued support and confidence in the MTN brand and all it stands for. We thank Stanbic IBTC Capital, our Lead Arranger and Dealer on this landmark CP Issuance, and our Joint Dealers – Chapel Hill Denham, Coronation Merchant Bank, FBNQuest Merchant Bank, FSDH Capital, Standard Chartered and UCML Capital. We also thank all other professional parties to the transaction, who worked tirelessly to ensure its timely and successful completion and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short term funding via the issuance of commercial papers.”

Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer, while 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 acted as Joint Dealers.

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