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MTN Nigeria Communication has raised N127 billion through the commercial paper programme to boost its working capital.
The company has notified the Nigerian Exchange Limited and the investing public of its N127 billion Series one and two Commercial Paper issuance under its registered N150 billion Commercial Paper Programme.
Commercial Paper is an unsecured short-term debt instrument used by corporate entities to meet their working capital requirements and pay off short-term debts.
The Issuance comprised two tenors, a 184-day Series one issuance priced at a 7.50 per cent yield and a 254-day Series two issuance priced at an 8.50 per cent yield. Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer, while Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Capital Limited, Standard Chartered Capital & Advisory Nigeria Limited and UCML Capital Limited acted as Joint Dealers.
The company said, the issuance is in line with its strategy to diversify its financing options, with the proceeds being deployed towards working capital and general corporate purposes.
At the signing ceremony of the fund, the chief executive, MTN Nigeria, Mr Karl Toriola 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.
He applauded all professional parties to the transaction, who worked tirelessly to ensure its timely and successful completion and the board and management of FMDQ Securities Exchange for providing an efficient platform for raising short term funding via the issuance of commercial papers.
