MTN Nigeria has issued a N127 billion Series 1 and 2 Commercial Paper (CP) under its registered N150 billion programme.
BizWatch Nigeria understands that 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.
Speaking at the signing ceremony in Lagos, the Chief Executive Officer (CEO), MTN Nigeria, Karl Toriola explained that the N127 billion CP issuance would go into the record books as the largest CP issuance in Nigeria, adding that it is in line with the telco’s strategy to diversify financing options, with the proceeds being deployed towards working capital and general corporate purposes.
His words: “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.
“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.”
The MTN Nigeria chief added that with the N127 billion CP issuance, MTN Nigeria aimed at improving customer’s services and high-quality bouquet services that included a 5G spectrum that awaits regulatory approval.
Understanding the MTN Nigeria commercial paper
Commercial paper is a form of unsecured, short-term debt commonly issued by companies to finance their payrolls, payables, inventories, and other short-term liabilities.
