Under its N150 billion Commercial Paper (CP) issuance program, MTN Nigeria Communications Plc has announced intentions to issue N23 billion in series 3 CP notes.
The CP is an unsecured loan instrument normally issued for the financing of a firm’s short-term commitments, according to the company that made the announcement of the intentions on the floor of the Nigerian Exchange Limited (NGX).
The telecommunications giant stated that the offering is a part of the company’s aim to diversify its financing alternatives and that the cash would be used for working capital and general corporate purposes in a notice signed by its Company Secretary, Uto Ukpanah.
MTN Nigeria had issuance a historic N127 billion Series 1 & 2 CP under its registered N150 billion programme.
The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50 per cent yield and a 254-day Series 2 issuance priced at an 8.50per cent yield.
While speaking at the signing ceremony, the Chief Executive Officer, of MTN Nigeria Communication, Mr Karl Toriola said 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 company’s leadership, strong financial performance and corporate strategy.”
He noted that MTN Nigeria with the completion of the N127 billion CP aimed at improving customer services and high-quality bouquet services that included 5G spectrum that awaits regulatory approval.
“This CP allows us funding at an efficient rate to continue our products deployment and distribution network,” he said.
