Nigeria’s telecommunications giant, MTN Nigeria, is currently raising a N72.104 billion facility through the Series 10 commercial paper issuance programme. According to the notice from the company, the offer opened on Friday 24 November 2023 and will close on Monday 27 November 2023.
“The company is well positioned for the long term with unmatched investments in infrastructure – most expansive 2G, 3G, and 4G network (92.5% 2G, 86.3% 3G and 80.5% 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 7.5%,” ARM Securities said in a note to investors.
The coupon rate on the offer is 16% with a tenor of 266 days and a discount rate, a discount rate of 14 .33276 percent while the implied yield is 16 percent.
MTN Nigeria is rated AAA by GCR and Aa+ by Augusto. The offer document also states that the minimum subscription is N5 million and a subsequent addition of N1000.
“The issuance is part of the company’s strategy to diversify its funding sources with the funds being deployed towards short-term working capital requirements,” Uto Ukpanah, company secretary, MTN Nigeria, said.
MTN Nigeria’s share price closed at N238 per share last week Friday.
