×
  • Business - Companies
  • Updated: 1 year ago

MTN Nigeria Records Over-Subscription As It Issues Commercial Paper For N100bn

MTN Nigeria Records Over-Subscription As It Issues Commercia

MTN Nigeria recorded the largest debut commercial paper issuance by a Nigerian corporate entity following the issuance of N100 billion series I and II notes under the debut N100 billion commercial paper programme.

What Over Subscription Means For MTN Nigeria

The network provider in a statement said it initially planned to issue up to N50 billion under the N100 billion commercial paper programme, but due to over-subscription at the conclusion of the bookbuild, MTN Nigeria decided to issue the Commercial paper for N100 billion.

According to the telecoms firm, over-subscription shows the level of investor confidence in MTN Nigeria. MTN Nigeria also stated that the company has a "strong credit profile that supports the company's ability to meet its debt service obligations."

Note that for the debut commercial paper transaction, Chapel Hill Denham acted as the Arranger and Dealer. The Series I & II Notes will be listed on the FMDQ Securities Exchange.

Why MTN Nigeria Need The Cash

MTN Nigeria had sought credit for its "working capital and general corporate purposes." Participation in the issuance included eligible individual and institutional investors such as pension fund administrators, asset managers, corporates and other financial institutions.

While reacting to the closure of the book build in a statement seen by AllNews, the Chief Executive Officer, Ferdinand Moolman, said, "The N100 Billion issued is the largest debut Commercial Paper issuance by a Nigerian corporate. It allows us to broaden our sources of funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing."

Tags

Join our Telegram platform to get news update Join Now

0 Comment(s)