MTN Nigeria Communications Plc has concluded series 10 commercial paper issue as part of its expanded N250 billion commercial paper issuance strategy.
According to The Times, this was included in the company’s notification to the investing public and Nigerian Exchange Limited.
The telecom giant claimed in a statement signed by Company Secretary, Uto Ukpanah that it had raised N72.1 billion and that 149% of the N721.1 billion issued had been subscribed to the offer. On November 29, 2023, the 266-day commercial paper with a 16% yield was released.
Working capital in the short term The CP issue is in line with MTN Nigeria’s plan to keep lowering its average cost of debt and expanding its pool of funding sources. The money raised will be used for short-term working capital requirements.
Chief Executive Officer of MTN Nigeria, Karl Toriola, stated:
“We are happy with the investor community’s support, as seen by the 149% subscription from a variety of investors. This illustrates MTN Nigeria’s strong brand, market leadership, and strong financial capability in the face of rising interest rates.
Under its N250 billion commercial paper issuance strategy, the telecom firm recently proposed issuing up to N72.1 billion in series 10 commercial paper notes.
The issuance is part of the company’s objective to diversify its funding sources, according to a statement signed by the Company Secretary, Uto Ukpanah, with the money being spent towards short-term working capital requirements.
MTN Nigeria Communications Plc said that its profit before tax decreased by 75.7% year over year to N32.08 billion in Q3 2023 from N132.04 billion in Q3 2022.
The group reported revenue of N614.2 billion in Q3 2023, up 21.4% year over year from the same quarter in 2022, according to the financial statement for the period ending September 30, 2023.
The group’s nine-month revenue was adjusted to N1.78 trillion, a 21.76% year-over-year rise over the similar quarter in 2022.
