MTN Nigeria, yesterday, signed the issuance of N127 billion ($306.3 million) series 1 and 2 commercial paper (CP), which is the largest of such debt instruments to be issued in the country.
Speaking at the signing ceremony, MTN Nigeria Chief Executive Officer, Karl Toriola, explained that the commercial paper issuance is part of a strategy to diversify its financing options.
The Guardian learnt that the CP is under MTN Nigeria’s N150 billion ($361.8 million) commercial paper programme and that proceeds from the exercise would go into boosting the telco’s working capital as well as serving other general corporate purposes.
Toriola explained that the “landmark” issuance represents yet another step towards cementing MTN Nigeria’s leadership in the telecommunications sector.
He said: “We are delighted to have successfully concluded what will go into the record books as the largest Commercial Paper issuance in Nigeria. The success of our CP Issuance is a clear demonstration of the strength and acceptance of the MTN brand and the trust placed by the investor community in our company’s leadership, strong financial performance and corporate strategy.
“Having emerged as one of two winners for the 5G spectrum recently auctioned by the Nigerian Communications Commission and also having just been granted final approval by the Central Bank of Nigeria for Momo Payment Service Bank Limited to commence operations license, this landmark issuance represents yet another step towards our cementing MTN Nigeria’s leadership in Nigeria’s telecommunications sector.”
The commercial paper is divided into two tenors. The first one is a 184-day-tenored issuance, which would be priced at 7.5 per cent yield. This would be followed by another 254-day-tenored series 2 issuance, which would be priced at 8.5 per cent yield.