Nigeria’s largest telecommunications company, MTN Nigeria is in the market seeking to raise N100 billion through its commercial paper programme. The offer which opened yesterday 16 August 2023 will close on 21 August 2023.
According to the offer document, MTN Nigeria will use the net proceeds of the offer to improve its working capital and general corporate purposes. The commercial paper offer comes in two series of 6 and 7.
Stanbic IBTC Capital Limited serves as the arranger to the offer which has tenors of 181 days and 265 days. The Series 6 offer which has a tenor of 181 days has a discount rate of 10.88 percent and an implied yield of 11.5 percent. The Series 7 offer has a tenor of 265 days with a discount rate of 11.2508 percent and an implied yield of 12.25 percent.
The dealers to the deal are Stanbic IBTC Capital Limited, Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, and Quantum Zenith Capital & Investments Limited.
The maturity date for Series 6 is 20 February 2024 while Series 7 has a maturity date of 14 May 2024.
“MTN Nigeria is the largest provider of communications services in Nigeria with over 77.1 million mobile subscribers across the country as at H1 2023. The Company is well positioned for the long term with unmatched investments in infrastructure – most expensive 2G, 3G, and 4G network (92.5% 2G, 86.3% 3G and 80.0% 4G population coverage), largest fibre network (over 35,000km) and a wide range of spectrum holdings.
“In addition, MTN Nigeria was the first to launch a 5G network in Nigeria, providing coverage in key cities in the six geopolitical regions with population coverage of 5.5%. The company has approximately 41 million active data users and 7 million active fintech users, driving digital and financial inclusion in a young and fast-growing population,” ARM Securities stated in a note to investors.
Minimum subscription to the offer is N5 million and subsequent additions of N1000.
The offer is rated AAA by GCR while Agusto rated it Aa+.
