MTN Offers Reward to Investors as It Raises N42.2 Billion Debt Capital
- MTN Nigeria Communications issued commercial papers to raise an additional N42.2bn in debt capital
- As part of its N250 billion commercial paper issue campaign, MTN Nigeria is raising N42.20 billion
- A regulatory filing states that the yields on the 180-day and 270-day CPs were 27.50% and 29.00%, respectively
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
MTN Nigeria Communications Plc has issued commercial papers (CPs) to generate about N42.2 billion in additional debt capital.
Source: Getty Images
Through the offering of series 15 and 16 commercial papers, MTN Nigeria is raising N42.20 billion as part of its N250 billion commercial paper issuance program.
The 180-day and 270-day CPs were issued at yields of 27.50% and 29.00%, respectively, according to a regulatory filing. The most recent issuances came after two previous CP issuances in the previous two months were successfully completed.
According to the telecommunications company in The Nation report, short-term working capital needs would be met using the net proceeds of the CPs.
Karl Toriola, the CEO of MTN Nigeria Communications Plc, stated that the recent issuances' success further demonstrated investors' faith in MTN Nigeria's management group and business plan.
He said,
“The CP Issuance is part of our established funding strategy and would not have been possible without the unwavering support of the investor community and our advisers.”
Stanbic IBTC Capital Limited acted as the Arranger and Dealer while CardinalStone Partners Limited, Chapel Hill Denham Advisory Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, Meristem Capital Limited, Quantum Zenith Capital & Investments Limited, and Vetiva Advisory Services Limited served as Joint Dealers on the transaction.
Earlier, Legit.ng reported that MTN Nigeria's shares have appreciated by 21% just two weeks into 2025. This makes it one of the outstanding performers on the Nigerian Exchange Group (NGX) in 2025 amid discussions of an imminent tariff hike.
Stock market analysts say this impressive performance after an unfavourable 2024 is driven by positive sentiments and fueled by the anticipated hike in tariff prices.
Recall that telecommunications operators have been agitating for an increase in call and data tariffs since 2024, and speculations arose last month that the increase would be approved in the first quarter of 2025.
Speaking during an interview on Arise TV, Karl Toriola, CEO of MTN Nigeria, warned that failure to adjust tariffs could jeopardize the telecom industry’s survival.
After months of negotiation by stakeholders and speculations by the public, Minister of Communication, Innovation, and Digital Economy, Bosun Tijani confirmed that there will be a tariff hike, although not up to 100% as the Telcos proposed.
Telcos record N5.3 trillion in revenue in one year
Legit.ng reported that telecom companies (Telcos) operating in Nigeria made N5.3 trillion in revenue from services like voice and data in 2023.
This was due to a rise in telecom subscriptions, which reached 224 million in 2023, up from 222 million the year before.
Recall that Legit.ng earlier reported that telecom subscribers spent N44.7 billion on sending text messages (SMS) across networks in this period.
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Source: Legit.ng
