MTN Nigeria Communications PLC (MTN Nigeria) has raised N75.18bn through its Series 11 and 12 Commercial Paper (CP) issuance, significantly exceeding its initial target of N50bn.
This was contained in the company’s notice to the Nigerian Exchange Limited seen by Business Nexus.
The issuance, conducted under the company’s N250bn Commercial Paper Issuance Programme, attracted robust interest, with a subscription rate of 150 per cent.
The statement signed by the Company Secretary, Uto Ukpanah noted that the CPs, issued on November 7, 2024, comprised two tranches with tenors of 181 days and 265 days. These were priced at competitive yields of 27.50 per cent and 29.00 per cent, respectively.
The 265-day CP was particularly noteworthy, as its yield closely aligned with the 364-day Nigerian Treasury Bill, which closed at 29.84 per cent during an auction held on November 6, 2024.
This represents a significant rise in yields, increasing by 384 basis points compared to two weeks earlier.
According to the company, the transaction is regarded as strategically timed, coming as interest rates are expected to rise further due to ongoing monetary policy adjustments. The Central Bank of Nigeria and other authorities are intensifying efforts to address prevailing macroeconomic challenges, including inflationary and exchange rate pressures.
It noted that despite a challenging regulatory environment, the issuance attracted wide participation from institutional investors, including asset managers, banks, and insurance companies.
The absence of pension funds, resulting from a recent suspension of their participation in commercial paper by the National Pension Commission, did not hinder the success of the offer.
The company disclosed that the proceeds from the issuance will be utilized to support MTN Nigeria’s short-term working capital requirements, enabling the company to maintain its operational efficiency and meet its immediate financial obligations.
