MTN Nigeria has concluded Series 8 & 9 of its N20 billion commercial paper issuance program, successfully raising N52.9 billion.
The offering, fully subscribed by investors, consisted of 182-days commercial papers with a yield of 14.00% and 267-day commercial papers with a yield of 16.00%. The issuance was completed on November 7, according to documents from the NGX website.
Karl Toriola, CEO of MTN Nigeria, expressed gratitude for the success of the transaction, highlighting investor confidence in the company’s performance and management.
Toriola emphasized the importance of managing funding costs in a changing market terrain and acknowledged the support of advisers and the investor community in achieving a swift conclusion.
MTN had initially announced a N150 billion commercial paper program on April 7, 2022, which was later revised to N250 billion on August 22, 2023, to reduce debt costs and diversify funding sources.
Prior to this, the company raised N125 billion in Series 6&7 of its commercial paper issuance on August 30, 2023.
The move to the bond market for fundraising has become a trend among Nigerian companies facing rising finance costs due to increased interest rates. Notably, Dangote Cement Plc is also seeking to raise N300 billion through a 9-series commercial paper issuance program.
