© Reuters.
MTN Nigeria Communications Plc successfully concluded its Series 8 & 9 Commercial Paper Issuance under the expanded N250 billion program on Tuesday. The fully subscribed offer raised a total of N52,895,846,000 through the issuance of 182-day and 267-day commercial papers with yields of 14% and 16% respectively. The funds are aimed to satisfy short-term working capital requirements.
The company’s CEO, Karl Toriola, attributed this successful transaction to robust investor confidence in MTN’s performance and management, as well as unwavering adviser support. This achievement marks another significant stride in MTN Nigeria’s fundraising efforts.
Previously, on August 30, MTN Nigeria had raised N125 billion in Series 6&7 of the issuance. Prior to that, it revised its target to N250 billion on August 22, a crucial step towards reducing debt cost and diversifying funding sources.
The initial launch of a N150 billion commercial paper program was on April 7, 2022, according to NGX website data. Since then, the telecom giant has been actively engaging in fundraising efforts as part of its strategic financial plan.
In light of rising finance costs, other Nigerian companies such as Dangote Cement Plc are also addressing their fundraising needs by turning to the bond market. This trend underscores the growing reliance on alternative funding sources amid challenging economic conditions.
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