MTN Nigeria Successfully Raises N125 Billion Through Commercial Papers to Fund Operations
- MTN Nigerian says it has successfully raised about N125 billion in Commercial Papers
- The company stated that it would use the fund to finance its short-term operations, among other things
- The Papers include a 188-day CP at 11.00 yield% and 267-day commercial paper at 12.50%.
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MTN Nigeria says it has successfully raised N125 billion via the issuance of Commercial Papers to boost its working capital and funding needs.
The telecommunications giant disclosed this in a notice to the Nigerian Exchange Limited on Monday, March 6, 2023.
Source: UGC
The company completed the Series 4 & 5 Commercial Paper issuance under its N150 billion Commercial Paper Programme.
In a notice signed by the company's secretary, Ufot Ukpanat, MTN said that it sought to raise N100 billion but that the CP was 125% subscribers, thereby increasing it to N125 billion.
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The Papers include a 188-day CP at 11.00 yield% and 267-day commercial paper at 12.50%.
The company completed the Commercial Paper Issuance on March 1, 2023.
The company said the CP is its plan to diversify its funding options and would use it to fund short-term working capital and other requirements.
MTN Nigeria said:
"The CP issuance is part of MTN's strategy to diversify its funding options. The proceeds will be used for its short-term working capital and funding requirements."
Commercial paper is an unsecured, short-term debt instrument issued by corporations. It's typically used to finance short-term liabilities such as payroll, accounts payable, and inventories. Commercial paper is usually published at a discount from face value. It reflects prevailing market interest rates, Investopedia said.
Zenith Bank, GTB, and others move to acquire other companies under holding company structure
Legit.ng reported that on Friday, March 3, 2023, Zenith Bank, one of Nigeria's most prominent banks, received principal approval from the Central Bank of Nigeria to become a holding company.
In a statement signed by its Secretary, Michael Otu, the bank said that with the new move, it would have a banking group with subsidiaries in the financial services industry.
According to the statement, Jim Ovia will be the new chairman of Zenith HoldCo and will continue as Zenith Bank chairman until the new company becomes operational.
Source: Legit.ng
