MTN Nigeria Communications Plc. has announced to the public, its successful Commercial Paper (CP) Issuance (series 1 & 2) under its N100billion CP Issuance Programme.
MTN Nigeria Communications Plc. (CP 1) had a tenor of 180 days and 270 days (CP 2) with an effective yield of 4.90 per cent for a N20 billion size (CP1) and 5.95 per cent for an N80 billion size (CP2). The CP 1 & 2 notes will be listed on the FMDQ Exchange.
This is the largest commercial paper issuance recorded in Nigeria’s corporate history.
The proceeds from the MTN Nigeria Communications Commercial paper issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.
The company in a statement said, the commercial paper issuance was c.400 per cent subscribed, with active participation from individuals, institutional investors which included pension fund administrators, asset managers, and other corporate firms and other financial institutions.
Commenting at the closure of the Book Build Chief Executive Officer, MTN Ferdinand Moolman said, “The N100 billion issued is the largest commercial paper issuance by a Nigerian corporate, it allows us to broaden our sources for funding and combines our established lines of credit with access to capital market funding, which will lower our overall cost of borrowing.”Chapel Hill Denham Advisory Limited acted as the arranger and dealer of this successful Commercial Paper Issuance recorded in Nigeria’s debt market.
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