MTN Nigeria raises N50bn commercial paper for operation


MTN Nigeria Communications (MTNN) Plc said it is raising N50 billion in Series one and Series two Commercial Paper issuance under its N100 billion Commercial Paper (CP) Programme in order to support its working capital and general corporate purposes.

This issuance under the CP Programme marks MTN Nigeria’s debut in the domestic debt capital market.

Typically short-term debt instruments, commercial papers enable corporates to source funds from the investing public to meet obligations ranging from financing of payroll and accounts payable to settling inventories.

The company offers series one of 180-day CP with an effective yield of 4.8000 per cent to 5.0000 percent and a discount rate of between 4.6890 per cent to 4.8797 percent.

For series two, offer the 270-day CP with an effective yield of 5.8500 percent to 6.0000 per cent and a discount rate of 5.6078 per cent to 5.7455 percent.

Method of offer is through book building with a minimum of N1 million. The company offer opened yesterday May 28, 2020 and to close on June 4, 2020 according to Afrinvest Limited.

MTNN is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers (c. 70 million), active data users (c. 26.8 million), revenue (almost 50.0 per cent of industry), and profit pool.

“MTNN is well positioned for the long term with its unmatched investments in its infrastructure, most expansive 2G, 3G, and 4G network, largest fibre network (c. 29,000km) that spans across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings  and the exciting market opportunity Nigeria brings.

“Mobile voice and data subscription will continue to be a major part of consumer spending, largely driven by increased adoption by the young population. It is important to note that in the recent COVID-19 environment, MTNN has continued to sustainably add new subscribers, and customer voice and data usage remains resilient.”


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