MTN Nigeria Communications PLC has successfully completed its Series 13 and 14 Commercial Paper issuance under the company’s N250 billion Commercial Paper Issuance Programme.
Commercial paper is an unsecured, short-term debt instrument issued by corporations and mostly used to finance short-term liabilities such as payroll, accounts payable, and inventories.
Daily Trust reports that MTN Nigeria has in recent times posted losses due to the depreciation of naira.
In its half year results, the telecom firm posted N519.1bn loss due largely to naira depreciation.
In the commercial paper issuance, MTN Nigeria sought to raise N50 billion, but the offer recorded a 144% over subscription with N72.18 billion issued.
The 180-day and 270-day CP were issued at yields of 27.50% and 29.00%, respectively, with an issue date of Friday, 29 November 2024.
This follows the N75.18 billion Commercial Paper issued on 7 November 2024, demonstrating investor confidence in the management and financial performance of MTN Nigeria.
The telecommunication firm in a statement by the company secretary, Uto Ukpanah said the proceeds will be used to support short-term working capital requirements.
Speaking on the development, MTN Nigeria’s Chief Executive Officer, Karl Toriola, said: “We are pleased with the support received from the investor community, having recorded 144% subscription with participation from a broad range of investors.
“This further reinforces MTN Nigeria’s financial position, brand strength and market leadership amidst the challenging macro conditions.”
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