MTN Nigeria Communications PLC has once again demonstrated its robust financial strategy, completing its Series 15 and 16 Commercial Paper (CP) issuance and successfully raising N42.20 billion. This milestone is a continuation of the company’s efforts to leverage its N250 billion Commercial Paper Issuance Programme to support its operations and growth objectives.
The announcement was made through a formal notification published on the Nigerian Exchange (NGX) disclosure platform, signed by the Company Secretary, Uto Ukpanah. The Series 15 and 16 issuances achieved an impressive subscription rate of 84.4%, underscoring strong investor confidence.
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A Strategic Funding Approach
MTN Nigeria has been consistently raising capital through its commercial paper programme, which has become a cornerstone of its funding strategy. The latest Series 15 and 16 issuances were conducted on December 23, 2024, offering yields of 27.50% for the 181-day tenor and 29.00% for the 270-day tenor. These attractive yields catered to a diverse investor base, enhancing the appeal of the offerings.
The initial target for the Series 15 and 16 issuances was set at N50 billion, but the eventual subscription totalled N42.20 billion. Despite falling short of the initial target, the achievement represents a significant milestone, reflecting sustained investor interest in MTN Nigeria’s financial instruments.
Expert Collaboration Ensures Success
The issuance process was spearheaded by Stanbic IBTC, serving as the Lead Arranger and Dealer, alongside joint dealers including CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank. This team of financial experts played a pivotal role in ensuring the success of the transaction.
CEO’s Remarks Highlight Investor Confidence
Karl Toriola, the Chief Executive Officer of MTN Nigeria, expressed his gratitude for the successful issuance, stating:
“We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team. The Commercial Paper Issuance is a key component of our established funding strategy and could not have been accomplished without the steadfast support of the investor community and our advisors.”
Building on Past Success
The Series 15 and 16 issuances follow the successful completion of Series 13 and 14 in November 2024, where MTN Nigeria raised N72.18 billion. This was an oversubscribed issuance, achieving 144% of its initial target, and it offered the same yield structure as the most recent series.
In the same month, MTN Nigeria also issued Series 11 and 12 Commercial Papers, raising an impressive N75.1 billion. These milestones highlight the company’s consistent ability to attract substantial investments and execute its financial strategy effectively.
The Broader Impact
MTN Nigeria’s successful commercial paper programme reflects a well-executed approach to capital raising, supporting its operational and business expansion goals. This strategy also aligns with the company’s commitment to delivering value to its stakeholders while maintaining a robust financial position.
Source
For more details, visit the official report at Nairametrics.
This achievement not only reinforces MTN Nigeria’s position as a market leader but also sets a benchmark for corporate capital raising in the Nigerian financial market.
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