Connect with us

Capital Market

MTN Nigeria Completes Issuance of N89.999 Billion Series II Under Its N200 Billion Bond Program

Published

on

Karl O Toriola - Investorsking.com

MTN Nigeria on Thursday announced it has successfully completed the issuance of its N89.999 billion Series II 10-Year 12.75 percent fixed-rate bonds due 2031 under the company’s N200 billion bond issuance programme.

The Series II Bond is the second issuance in 2021 by MTN Nigeria Following the successful debut in May 2021. This completes MTN Nigeria’s N200 billion bond issuance programme, which was fully subscribed.

The bookbuild process commenced on 8 October 2021 and was completed on 15 October 2021. The offer was well received with active participation from a diverse range of high-value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals. During the book build, the total value of subscriptions received peaked at N133,454,000,000, representing a 1.48 times oversubscription. As a result, the Series II Bond was launched at a clearing coupon of 12.75 percent with N89,999,000,000 in qualified bids.

The successful Series II Bond issuance reflects MTN Nigeria’s strong credit ratings, which was recently upgraded to AAA, investors confidence in its ability to maintain market leadership in the telecoms industry, and the depth of the domestic capital market. The net proceeds will be used to optimise MTN Nigeria’s capital structure and finance network expansion.

Commenting on the bond issuance, Karl Toriola, Chief Executive Officer, MTN Nigeria, Said, “We continue to be grateful for the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network. In line with the Company’s strategy, the bonds issued this year enable us to diversify funding sources and extend the maturity profile of the company’s debt portfolio. We are very proud of this landmark transaction and thank the investor community for their continued confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry.”

Chapel Hill Denham Advisory Limited acted as the Lead Issuing House for the Series II Bond, and Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank and Vetiva Capital Management acted as Joint Issuing Houses.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments
Advertisement
Advertisement
Advertisement