Table of Contents
Key Points
- MTN Nigeria raised N42.20 billion($27.1 million) through Series 15 and 16 Commercial Paper issuances, part of a N250-billion ($160.56 million) program.
- The issuances, offered at yields of 27.50% (180-day tenor) and 29% (270-day tenor), aim to support short-term working capital needs.
- MTN Nigeria continues to bolster its liquidity, showcasing robust investor confidence despite economic challenges.
MTN Nigeria, the country’s largest telecommunications company, led by Chief Executive Officer Karl Toriola, has successfully concluded its Series 15 and 16 Commercial Paper (CP) issuance, raising N42.2 billion ($27.1 million) as part of its funding strategy.
The issuance is a component of MTN Nigeria’s N250-billion ($160.56 million) commercial paper program and follows two successful issuances in recent months. The proceeds from the 180-day and 270-day papers, issued at competitive yields, will be deployed to meet short-term working capital requirements.
Strengthening market confidence
The commercial papers, with maturities of 180 and 270 days, were priced at yields of 27.50 percent and 29 percent, respectively, with an issue date of Dec. 23, 2024 marking the third successful CP issuance by the company in the past two months.
In December 2024, Nigeria's largest telecommunications company successfully concluded its Series 13 and 14 Commercial Paper (CP) issuances, raising an impressive N72.18 billion ($46.6 million) in an offering that witnessed overwhelming demand.
This resulting in a 144 percent oversubscription, underscoring the strong investor confidence in MTN Nigeria's operational excellence and strategic direction.
Expressing gratitude for the support from the investor community, MTN Nigeria's Chief Executive Officer, Karl Toriola commented, “This transaction underscores the confidence investors have in our business model and management. It aligns with our broader funding objectives and reflects the unwavering support of our partners and advisers.”
The issuance was arranged by Stanbic IBTC Capital Limited, with participation from several joint dealers, including CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, and Vetiva Advisory Services Limited.
Expanding footprint despite financial losses
MTN Nigeria, an operating company (opco) of MTN Group, Africa’s leading mobile network operator, offers a comprehensive suite of telecommunications services, including mobile network access, internet connectivity, bill payments, and device financing solutions.
Under Toriola's leadership, the company reported a loss after tax of N514.93 billion ($330.69 million) for the nine months ending Sept. 30, 2024, an 8.54 percent increase from the N474.43 billion ($305.31 million) loss reported in the same period last year.
Despite these challenges, MTN Nigeria is expanding its footprint in Nigeria’s financial services sector, having recently acquired the remaining 7.17 percent stake in MoMo Payment Service Bank for N6.95 billion ($4.16 million).
