MTN Nigeria Communications (MTNN) Plc, has successful raised and completed N115 billion Series 1one Fixed Rate Bond issuance.
The transaction was 1.68 times oversubscribed and represents MTN Nigeria’s first issuance under its new N200 billion Bond Programme and third bond issuance in the Nigeria debt capital markets.
This was stated in a release signed by its company secretary Uto Ukpanah to the investing public.
According to the release, the book build for the dual tranche, four year Tranche A and 10 year Tranche B bond issuance commenced on September 15, 2022 and closed on September 21, 2022 with a total value of 168.54 billion in bids received, representing a 1.68 times oversubscription of the intended N100 billion issuance.
“The offer was well received with active participation from a diverse range of investors, including pension funds, insurance companies, asset managers, other financial institutions, and high net worth individuals. The Series one Tranche A and Tranche B Bonds were issued at a clearing coupon of 13.50 per cent and 14.50 per cent, respectively. Of the total qualifying bids, MTN Nigeria opted to issue a combined value of $115 billion across both tranches; N10.09 billion in the four-year Tranche A and $104.91 billion in the 10-year Tranche B.
“The successful Series one Bond issuance reflects the continued investor confidence in MTN Nigeria and its management team and the depth and resilience of the domestic debt capital market. MTN Nigeria intends to use the net proceeds of the offering to finance its network expansion, optimize working capital and for general corporate purposes,” it stressed.
Speaking on the series one Bond issuance, chief executive officer of MTN Nigeria, Karl Toriola said, “We are very pleased with the outcome of our third outing in the domestic bond market. We appreciate the investor community for the strong show of support and consider this to be an affirmation of their belief in MTN Nigeria’s value proposition.”
Toriola added that the Nigerian capital markets continue to present us with the opportunity to raise long-term financing to aid investments in our network and diversify our Funding sources, saying, “We are very proud of this transaction and thank all parties who contributed to ensuring a successful bond offer. The management of MTN Nigeria is firmly resolved in its strategy to add value to all stakeholders and the growth of the Nigerian telecoms industry.”
