MTN Nigeria Successfully Raises N72.1 Billion in Series 10 Commercial Paper Issuance

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MTN Nigeria Communications Plc has announced the successful completion of its Series 10 Commercial Paper issuance, surpassing its initial target by recording a remarkable 149 percent subscription. The issuance, part of an upsized N250 billion Commercial Paper Issuance Programme, reflects MTN Nigeria’s strategic efforts to diversify funding sources and reduce its average cost of debt. With a focus on short-term working capital requirements, this financial move aligns with the company’s commitment to sustained growth and innovation.

Key Points:

  1. Successful Capital Raise:
    • MTN Nigeria sought to raise N72.1 billion through its Series 10 Commercial Paper issuance.
    • The offer exceeded expectations, achieving a 149 percent subscription, resulting in the issuance of the targeted N72.1 billion.
  2. Financial Strategy and Market Resilience:
    • The Commercial Paper Issuance is in line with MTN Nigeria’s strategy to diversify funding sources and lower the average cost of debt.
    • Karl Toriola, MTN Nigeria’s CEO, acknowledged the substantial support from investors, citing it as a testament to the company’s financial strength, brand resilience, and market leadership, especially in the face of upward pressure on interest rates.
  3. Utilization of Proceeds:
    • The proceeds from the issuance will be directed towards addressing short-term working capital requirements.
    • This strategic move positions MTN Nigeria to sustain its commitment to network expansion, innovative services, and digital solutions, fostering continued growth.

Conclusion: MTN Nigeria’s successful completion of the Series 10 Commercial Paper issuance underscores the confidence and support from a diverse investor community. With a robust financial capacity and brand strength, the company not only exceeded its capital raise target but also demonstrated resilience in the dynamic market conditions. The strategic allocation of proceeds towards short-term working capital needs aligns with MTN Nigeria’s vision for sustained growth, network expansion, and commitment to providing innovative services and digital solutions, reinforcing its pivotal role in connecting Nigerians to a brighter future.

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