MTN Nigeria Raises N125bn through Commercial Paper

Kayode Tokede

MTN Nigeria Communication Plc has notified the Nigerian Exchange Limited (NGX) and the investing public of the successful completion of its series 4 & 5 Commercial Paper Issuance under N150billion CP issuance Programme.

The telecommunication giant in a statement signed by its company secretary, Mr. Uto Ukpanah stated that it sought to raise N100billion and the transaction was 125 per cent subscribed with a total of N125billion to enable the company to disburse the fund on short-term working capital and funding requirements.

Commercial paper is an interest-bearing promissory note exchanged for capital. It is a credit instrument or a channel to obtain loans from the securities market without approaching the bank.

The commercial paper is issued by a corporate organisation in need of funds for short-term financial obligations, which include; working capital, and refinancing debt, amongst others.

According to his statement, “MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, with a total of A125 billion raised.

“MTN Nigeria issued 188-day commercial papers at a yield of 11.00% and 267-day commercial papers at a yield of 12.50%. The CP Issuance was completed on 1 March 2023.

“The CP Issuance is part of MTN Nigeria‘s strategy to diversity its funding options. The proceeds will be utilised for its short-term working capital and funding requirements,” the document reads.