MTN Nigeria Communications (MTNN) Plc on Tuesday has announced the successful issuance of ₦100 billion Series I & II Commercial Paper (CP) notes.
The telecommunication giant stated this in a notice to the Nigerian Stock Exchange (NSE) and the investing public signed by Uto Ukpanah, its Company Secretary.
The CP issuance which Chapel Hill Denham acted as arranger and dealer was significantly over-subscribed, thus push the Telco to raise more than initially planned.
In a statement sent to Business Remarks, MTN Nigeria said that the Series I 180 day CP was priced at an effective yield of 4.90 % for a ₦20 billion size.
According to the statement, Series II 270 day CP sizes at ₦80 billion, clears at an effective yield of 5.95%.
“We initially set out to issue up to ₦50 billion under the ₦100 billion programme but, at the conclusion of the bank book build, the CP issuance was 400% subscribed.
“Given the significantly over-subscribed book, MTNN opted to issue up to the ₦100 billion limit of the registered CP programme,” it said.
It noted that the CP witnessed active participation from a diverse eligible individual and institutional investors such as pension fund administrators, asset managers and corporates, among others.
“The level of interest in MTNN’s debut in the Nigerian debt markets is a strong reflection of investor confidence in its ability to continue to deliver on its strategic objectives,” the statement added.
Ferdinand Moolman, the company’s Chief Executive Officer, was quoted by the statement as saying that the ₦100 billion issued was the largest debut CP issuance by a Nigerian corporate entity.
Moolman said the CP would enable the company to broaden its sources of funding.
“It allows to broaden our sources of funding and combines established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.
“The proceeds from the issuance will be applied towards MTNN’s working capital and general corporate purposes.
“The Series I & II notes will be listed on the FMDQ Securities Exchange,” Moolman stated.
MTN Nigeria Completes ₦100 billion Working Capital Raise