MTN Nigeria Considers N23bn CP Issuance

Kayode Tokede

MTN Nigeria Communications Plc has announced plans to issue N23billion series 3 Commercial Paper (CP) notes under its N150billion CP issuance programme.
The Company who announced the plans on the floor of the Nigerian Exchange Limited (NGX) said the CP is an unsecured debt instrument issued typically for the financing of a firm’s short-term liabilities.

The telecommunication giant in a notification signed by its Company secretary, Uto Ukpanah said the issuance is part of the company’s strategy to diversify its financing options with the funds deployed towards working capital and general corporate purposes.

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, MTN Nigeria Communication, Mr Karl Toriola had 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.