MTN Nigeria Communications Plc on Monday issued a historic N127 billion Series 1 & 2 Commercial Paper (CP) under its registered N150 billion programme.
The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50% yield and a 254-day Series 2 issuance priced at an 8.50% yield.
According to the telecommunication giant, the issuance was in line with its strategy to diversify financing options, with the proceeds being deployed towards working capital and general corporate purposes.
Speaking at signing ceremony in Lagos on Monday, the Chief Executive Officer, MTN Nigeria Communication, Mr Karl Toriola explained that the N127 billion CP issuance would go into the record books as the largest CP issuance in Nigeria.
According to him, “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 MTN Nigeria’s our company’s leadership, strong financial performance and corporate strategy.
“Having recently emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having recently just been granted final approval by the Central Bank of Nigeria (CBN) 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.”
He added that, “We thank first and foremost our customers and the investor community for their continued support and confidence in the MTN brand and all it stands for.”
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Responding to questions from journalists, he noted that the MTN Nigeria with the completion of the N127 billion CP aimed at improving customer’s services and high quality of bouquet services that included 5G spectrum that awaits regulatory approval.
He expressed that MTN Nigeria with the CP issuance was poised to maximising return to shareholders through dividend pay-out and capital appreciation. Of its stock on the Nigerian Exchange Limited (NGX).
“This CP allows us funding at an efficient rate to continue our products deployment and distribution network. It is expected to translate into shareholders return,” he said.
He commended efforts of professional parties involved in the CP transaction, and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short term funding via the issuance of CPs.
The Managing Director, Stanbic IBTC Capital, Mr. Funso Akere said the operators and MTN management worked four-week to work out the CP issuance, describing it as a landmark achievement in the debt capital market issuance programme.
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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