Table of Contents
Telecom giant MTN Nigeria is gearing up to issue Series 8 & 9 Commercial Paper totaling N52.896 billion as part of its N250 billion Commercial Paper Programme.
The allocation includes N30 billion for Series 8 (maturing in 270 days) and N22.896 billion for Series 9 (maturing in 182 days). This strategic move aims to enhance financing options for short-term working capital and other requirements.
Join our Telegram Channel for Updates
In a recent filing with the Nigerian Exchange Limited, MTN highlighted the success of its Series 6 & 7 Commercial Paper Issuance, totaling a robust N125 billion with an impressive 146% oversubscription. This accomplishment marks the largest aggregate CP issuance by any corporate in Nigeria’s debt capital markets within a calendar year. Despite a 75.7% YoY decline in profit before tax in Q3 2023, MTN reported a substantial 21.8% increase in revenue, reaching N1.77 trillion.
The decision to issue commercial paper aligns with MTN Nigeria’s strategic goal of diversifying funding sources and reducing its average cost of debt. This reflects investor confidence in MTN’s credit profile and Commercial Paper program. MTN Nigeria’s CEO, Karl Toriola, emphasized the company’s robust financial capacity, brand strength, and industry leadership as key contributors to the success of its investment portfolio.
This latest commercial paper issuance underscores MTN’s commitment to strategic financial management and its ongoing business strength. Despite the challenges, MTN remains focused on maintaining financial resilience and sustaining its position as a leader in the telecommunications industry.
