MTN Nigeria Communications PLC has disclosed plans to issue up to N50 billion through its Series 15 and 16 Commercial Paper notes, under its N250 billion Commercial Paper Issuance Programme.
In a filing issued to the Nigerian Exchange, the company wrote: “MTN Nigeria Communications PLC (“MTN Nigeria” or the “Company”) hereby notifies Nigerian Exchange Limited and the investing public of its proposed issuance of up to N50 billion Series 15 and 16 Commercial Paper note under its N250 billion Commercial Paper Issuance Programme (the “Issuance”).
The Issuance is part of the Company’s strategy to diversify its financing options with the proceeds deployed to support short-term working capital requirements.
Further details on the Issuance will be disclosed to the market.”
Expected to enhance its short-term working capital, the announcement follows the successful completion of the Series 13 and 14 Commercial Paper issuance, which raised N72.18 billion, going beyond the original target by 44%.
With MTN Nigeria standing strong in the debt capital market, and attracting interest from investors, the company previously raised N75.1 billion through Series 11 and 12 papers, surpassing the targeted N50 billion.
MTN Nigeria’s issuance of these new Series 15 and 16 papers is designed to improve its liquidity. Despite reporting a huge loss of N514.9 billion for the first three quarters of 2024, driven largely by the depreciation of the naira, the company has continued to generate positive cash flow.
CEO Karl Toriola pointed out that while the foreign exchange challenges continue, the company remains focused on strengthening its financial position through initiatives aimed at restoring its balance sheet.
The proceeds from this latest issuance will be used to meet the company’s immediate financial needs and ensure continued operational efficiency.
MTN’s focus on diversifying its funding sources is essential as it scales through macroeconomic challenges and works towards restoring its financial stability.
The Series 15 and 16 Commercial Paper notes will be offered to investors as part of the company’s ongoing capital-raising programme.
The N250 billion Commercial Paper Issuance Programme is designed to support MTN Nigeria’s objectives and ensure the company remains strong for resilient growth, even with the challenging economic environment.
