MTN Nigeria Communication Plc, Nigeria’s biggest telecom sector has proposed the issuance of up to N72.1 billion series 10 commercial paper notes under its N250 billion commercial paper issuance programme.
This was revealed in the notice sent to the Nigerian Exchange Limited and the investing public.
The statement submitted to the NGX was signed by the Company Secretary, Uto Ukpanah, who stated that the issuance is part of the company's strategy to look for different ways to attract revenue with the purpose of the fund deployed towards short-term working capital requirements.
Conversely, MTN Nigeria said it was able to generate N52.9 billion as it completed Series 8 & 9 of its N20 billion commercial paper issuance programme.
According to a statement, MTN Nigeria raised a total of N52,895,846,000 through both series, and the offer was fully subscribed by investors, Nairametrics report.
The company also added that the 182-day commercial papers were issued with a yield of 14.00% and the 267-day commercial papers were issued a yield of 16.00%. This was said to be completed on November 7.
Addressing this, Karl Toriola, MTN Nigeria CEO noted,
We are grateful for the success of this transaction which demonstrates investor confidence in the performance and management of MTN Nigeria. The market terrain is changing and managing our funding costs is a key focus.
The transaction was concluded in record time and this could not have been possible but for the unwavering support of our advisers and the investor community.
The Firm's Win
In the firm Q3 Report, MTN Nigeria Communications Plc recorded a year-on-year drop of 75.7% in its profit before tax to N32.08 billion in 2023, when compared to N132.04 billion in Q3 2022.
MTN Nigeria Group financial statement for Q3 2023, which ends September 30, 2023, the group reported a revenue of N614.2 billion and this shows a year-on-year increase from the same period in 2022.
The earnings increased the group revenue by 21.76% to settle at N1.78 trillion.