MTN Nigeria Raises N75.18bn Via Commercial Paper

Kayode Tokede

MTN Nigeria Communication Plc has said that it has successfully raised N75.18 billion Series 11 & 12 Commercial Paper (CP) issuance under its N250 billion CP issuances programme.

The company secretary, MTN Nigeria Communication, Uto Ukpanah in a statement stated that the telecommunication company had wanted to raise N50 billion in the issuance, stressing that the offer recorded a 150 per cent subscription with N75.18 billion issued to investors.   

Ukpanah in his signed statement stated that the proceeds of the issuance will be applied toward the company’s short-term working capital requirements. 

According to him, the 181-dy and 265-dy CP were issued at yields of 27.50per cent and 29 per cent, respectively, with an issue date of November 7, 2024,

“The 265-day Series 12 CP was priced broadly at par with the 364-day Nigeria Treasury Bill Instrument, which closed at a yield of 29.84 per cent during the auction held on November 6, 2024. This yield was 384 basis points higher than the closing yield at the auction two weeks earlier.  This represents a well-timed transaction for the company, as interest rates are expected to rise further following the outcome of the auction as monetary policy authorities continue to address interest and exchange rate pressure.

“The success of the transaction is further demonstrated by the level of oversubscription despite the absence of pension funds following the recent suspension of their participation in a CP by the National Pension Commission. The offer recorded participation from assets managers, banks, insurance companies and other qualified institutional investors,” the statement added. 

The stock price of MTN Nigeria Communication traded flat at N170.00 per share as of November 15, 2024.