MTN Nigeria’s Commercial Paper Records 146% Subscription

Kayode Tokede

MTN Nigeria Communications Plc, has said that it successfully completed its Series 6 & 7 Commercial Paper (CP) Issuance under its upsized N250billion CP Issuance Programme with 146 per cent oversubscription by investors.

The telecommunication giant in a notice on the Nigerian Exchange Limited (NGX) said it wanted to raise N100billion, and the offer recorded 146 per cent subscription with N125billion issued across both series

The Company Secretary, MTN Nigeria Communications, Uto Ukpanah in a statement said the offer represents the largest aggregate CP issuance within a calendar year by any corporate in Nigeria’s debt capital markets.

MTN Nigeria issued 181-day CP at yield of 13 per cent and 265-day CP at a yield of 13.50 per cent, with an issue date of August 23, 2023.

Ukpanah stated that the CP issuance aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt.

“The proceeds will be applied towards short-term working capital requirements,” he said.

MTN Nigeria’s Chief Executive Officer, Karl Toriola in a statement said, “We are pleased with the support received from the investors community, having recorded 146 per cent subscription. This reflects MTN Nigeria’s robust financial capacity, the brand’s strength, and our leading role in the industry.”

MTN Nigeria had reported a 29.14 per cent decline in its profit for the half year ended June 30, 2023 to N128 billion, compared to N181 billion during the same period in 2022.