MTN Nigeria, the leading telecommunications operator in the largest telecoms market in Africa, has announced the issuance of its Series III (180-day tenor) and Series IV (270-day tenor) Commercial Paper under its N200 billion Commercial Paper Issuance Programme which is scheduled by the company to close on Wednesday, March 17, 2021. The telecoms giant, in a corporate disclosure, revealed that the proceeds from the offer will be applied towards MTN Nigeria’s working capital and general corporate purposes.
The company, popularly known as the largest mobile operator and the undisputed market leader in Nigeria further revealed that the offer which commenced on March 11 would close on March 17, with the settlement on March 19, 2021. However, the 180-day tenor Commercial Paper is being issued at the discount rate range of 4.6500 per cent to 4.8500 per cent with an effective yield in the range of 4.7591 per cent to 4.9688 per cent. The 270-day tenor Commercial Paper is being issued at the discount rate range of 5.5500 per cent to 5.7500 per cent with an effective yield in the range of 5.7333 per cent to 6.0054 per cent respectively.
According to the statement, it reads thus: “We are pleased to announce that MTN Nigeria Communications Plc Series III and IV Commercial Paper Issuance under its N200 billion Commercial Paper (“CP”) Issuance Programme is OPEN. The proceeds from the Offer will be applied towards MTN Nigeria’s working capital and general corporate purposes. The Offer is scheduled to close on Wednesday, March 17, 2021.
“It is important to note that in the prevailing COVID-19 environment, MTN Nigeria continues to sustainably strengthen its subscriber base, while customer voice and data usage remains resilient. Nigeria offers an attractive telco market proposition as Africa’s largest economy and most populous country. Mobile voice and data subscription continue to be a major part of consumer spending, largely driven by increased adoption by the young population,” it stated.
The telecom giant revealed that it is well-positioned for the long term with its matchless investments in its infrastructure that’s most expansive on the 2G, 3G, and 4G network, largest fibre network of 29,500km spanning across Nigeria, largest physical and digital distribution platform, and a wide range of spectrum holdings coupled with the exciting Nigerian market opportunity.
Meanwhile, the Company has received an issuer rating of Aa by Agusto and AA by GCR for the issuance.
Frontpage September 2, 2019