N125 billion hoisted by MTN Nigeria through Commercial Paper Issuance by way to improve its Financing Alternatives
By Abdul Rahman Bangura-
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Divulged through an authorized testimony endorsed by the Company Secretary – Uto Ukpanah to Nigeria Exchange Limited.
Commercial document cites to a short-term, unsecured debt commitment that is published by financial institutions and large corporations as a variety to expensive procedures of funding. It is a money market instrument that commonly arrives with a adultness of up to 270 days.
The desire for saleable paper frequently occurs due to corporations facing a short-term desire to cover expenditures. MTNN informed the Nigerian Exchange and the investing public of the thriving culmination of its Series Six seven Commercial Paper issuance under its upsized N250 billion Commercial Paper Issuance Programme.
However, it is reported that “TN Nigeria sought to raise N100 billion, and the offer recorded 146% subscription with N125 billion issued across both series.
This represents the largest aggregate CP issuance within a calendar year by any corporation on Nigeria’s debt capital markets.
“MTNN incorporation paper at a yield of 13.00% and 265-day commercial paper at a yield of 13.50%, with an issue date of August 23rd, 2023. The CP Issuance aligns with MTN Nigeria’s strategy to continue diversifying its funding sources and reducing its average cost of debt. The proceeds will be applied towards short-term working capital requirements.”
MTN Nigeria Chief Executive Officer – Karl Toriola, said: “We are pleased with the support received from the investor community, having recorded 146% subscription.
This indicates MTN Nigeria’s active financial capacity, the brand’s strength, and our leading role in the industry.”
Stanbic IBTC Capital Limited dabbled the role of Arranger and Dealer with Chapel Hill Denham Advisory Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, and Quantum Zenith Capital and Investments Limited puttering the role of Joint Dealers on the transaction.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent