MTN Nigeria to raise additional funds from debt market

The telecommunications company, MTN Nigeria Plc, has moved to raise additional funds of up to N50 billion from the debt market to boost working capital through Series 15 and 16 commercial papers. In a regulatory filing, the telecom company told the Nigerian Exchange it plans to issue commercial paper worth about N50 billion. This will be the third commercial paper issuance made by the company after FX pressure broke its shareholders funds to a negative carrying value on the balance sheet or statement of financial position.
“MTN Nigeria Communications PLC hereby notifies Nigerian Exchange Limited and the investing public of its proposed issuance of up to N50 billion Series 15 and 16 commercial paper notes under its N250 billion commercial paper issuance programme,” its statement reads.
It said the issuance is part of a strategy to diversify its financing options, with the proceeds deployed to support short-term working capital requirements. MTN Nigeria Plc successfully raised additional N72.18 billion from commercial paper sales to investors in the debt capital market. This is in addition to N75 billion earlier raised in the market last month.
Early in December, the telecom company told the Nigerian Exchange in a regulatory filing that the amount was raised from its Series 13 and 14 commercial paper issuance under the company’s N250 billion programme.
MarketForces Africa reported that MTN Nigeria sought to raise N50 billion, but the offer recorded a 144% oversubscription with N72.18 billion issued.