Nigeria's biggest telecommunications company MTN Nigeria has proposed to issue up to N100 billion series 6 & 7 commercial paper under its Commercial Paper Issuance Programme to diversify its financing options.
The Company Secretary, Uto Ukpanah disclosed the recent development in a report filed to the Nigeria Exchange Limited.
The purpose of issuing commercial paper notes aligns with the company's goal of expanding the company's financing options and deploying the funds generated into general and capital use.
Here is what the statement reads on the NGX's website:
MTN Nigeria Communications PLC (“MTN Nigeria” or the “Company”) hereby notifies the Nigerian Exchange Limited and the investing public of its proposed issuance of up to N100 billion Series 6 & 7 Commercial Paper notes under its Commercial Paper Issuance Programme (the “Issuance”).
The Issuance is part of the Company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital and funding requirements.
Further details on the Issuance as well as subsequent issuances will be communicated to the market as the transactions occur.
Commercial paper is a short-term debt that big companies and financial institutions use instead of more expensive ways to get money. It's like borrowing without needing to give collateral.
It is a money market instrument that generally comes with a maturity of up to 270 days.