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

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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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Capital Market

Steps On How To Buy MTN Share Offer

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MTN

Following the announcement of MTN Nigeria Communication Plc that it was selling an additional 575 million shares at N169 per share, many investors have been asking questions on how to own a piece of the telecommunications giant before it closes on Tuesday, 14 December 2021.

Before we proceed, it is important to note that MTN has pegged the minimum subscription per transaction at 20 shares and subsequent multiples of 20, 40, 60, etc. The share offer was attached with a buy 20 shares and get 1 share free, however, an investor is subject to a maximum of 250 bonus shares. Meaning, an investor is only entitled to a bonus on the first 5,000 shares bought.

The incentive is open to retail investors who buy and hold the shares for at least 12 months.

Below is a step-by-step process on how to buy and own a piece of MTN Nigeria, the second most capitalised listed company in Africa’s largest economy.

How to Buy MTN Shares?

There are various channels to purchase MTN shares. Interested investors can either buy through MTN or from several approved stockbrokers, some of them are listed below.

To Buy Directly from MTN Nigeria

Interested investors should use the approved channels listed below to submit an application. You can find full details of how to submit an application at www.mtnonline.com/PO or consult with your stockbroker or banker for further guidance.

Application for MTN share Offer can also be submitted at MTN stores. The MTN MoMo agents have been trained to assist customers and provide guidance on using PrimaryOffer to submit an application.

To Buy Through the Nigerian Exchange Group (NGX)

Apply for your shares digitally through the PrimaryOffer app by NGX. Visit the PrimaryOffer website www.primaryofferng.com by NGX; or Download the PrimaryOffer app by NGX from the App Store for IOS and Google Play store for Android devices. Note that a BVN, CHN and CSCS Number is required to register and submit an application on the PrimaryOffer portal.

If your application is successfully submitted through PrimaryOffer, you will receive a confirmation email.

PrimaryOffer Application Process

  • Download the app from the app store
  • Click “Create an Account”
  • Input your BVN
  • Input your date of birth linked to your BVN
  • Click “Proceed”
  • Validate your information
  • Create password
  • Click “Submit”
  • An OTP is sent to your email for verification
  • Upon verification, log in with your email and password
  • Select “MTN Offer”
  • View details of the Offer – including the Pricing Supplement
  • Input number of shares you want to apply for
  • Input CSCS, CHN and Bank details for verification.

Alternatively, a CSCS and CHN will be created for you if you don’t” have a CSCS account.

  • Input your bank account details and re-insert your login password for verification
  • Read and accept the terms and conditions
  • Proceed to Make Payment
  • You will receive a notification of the successful submission in your email

To make payment on the PrimaryOffer portal, select one of the options available on the payment page, you can Pay with Card, USSD Code, Bank, Bank transfer, MVisa-QR Code, Barter, PayAttitutde, or with Paga.

If debited but payment status shows pending, forward your proof of payment to info@primaryofferng.com for further review.

Buying MTN Share Via Receiving Agents

Apply for your shares through authorized Receiving Agents – Issuing Houses, Stockbrokers & Banks (applications can be completed and submitted, and payments processed at bank branches nationwide).

  • An interested investor should complete an Application Form.
  • Submit the completed Application Form and make payment to a Receiving Agent.
  • Receiving Agent confirms receipt of payment for the number of shares applied for.
  • Receiving Agent issues an acknowledgment copy of the Application Form.
  • Receiving Agent submits the application on PrimaryOffer.
  • Applicant receives a notification from PrimaryOffer once the application is submitted by the Receiving Agent.

If you submit an application through a Receiving Agent, the Receiving Agent will provide you with a photocopy of the completed Application Form bearing the date and time stamp. This should be kept for record and tracking purposes.

After SEC’s clearance of the allotment, the shares allotted to you will be credited into your CSCS account and you will receive an automated SMS from CSCS notifying you of the credit.

What is a Clearing House Number (CHN)?

Clearing House Number (CHN) is a unique number that identifies each investor in the Nigerian Capital Market. The CHN is alphanumeric and starts with a “C”. Accordingly, your CHN details must be provided in the “CHN Number Details” section of your application.

What is a CSCS Account?

The CSCS (Central Securities Clearing System) is a computerised depository system responsible for clearing, storing, and settlement of securities transactions in the Nigerian Capital Market. A CSCS account number is created for you by your stockbroker and can be used for buying and selling securities. Accordingly, your CSCS details must be provided in the “CSCS Account Details” section of your application.

MTN Share Offer Eligibility

Anyone above 18 years of age is eligible to buy the MTN shares on offer, but there are a limited number of conditions.

  • Applicants must apply for a minimum of 20 shares and multiples of 20 shares thereafter.
  • Applicants must have a valid BVN to register and submit an application on PrimaryOffer.
  • Applicants must have a CHN and CSCS account.

Nigerians abroad who are interested in MTN share offer can also apply with their BVN details, also shares can be bought for another person if the beneficiary’s particulars, including BVN, CHN and CSCS account details are available. The beneficiary’s bank account details must be filled in for future e-payments, including dividends.

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Capital Market

Leaf Investment & Realtors Limited Acquires 1.97 Billion Shares in Oando Plc

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Oando Plc

Leaf Investment & Realtors Limited has acquired 1,968,452,614 shares in Oando Plc, according to the disclosure filing released via the Nigerian Exchange Limited.

Oando Plc, an indigenous oil company based in Nigeria, announced that Leaf Investment & Realtors Limited acquired Alhaji Dahiru Mangal’s interest in Oando Plc.

Therefore, based on the latest acquisition, Leaf Investment & Realtors Limited now holds a 15.83 percent stake in Oando Plc.

Oando’s statement reads “In accordance with Rule 17:13 (a) of the Nigerian Exchange Limited Issuers’ Rules, we hereby announce the acquisition of Alhaji Dahiru Mangal’s interest of 1,968,452,614, shares in Oando PLC by Leaf Investment & Realtors Limited.

“Based on the above, by Leaf Investment & Realtors Limited now holds 15.83% of Oando PLC.”

The statement is in line with the SEC disclosure act instituted two years ago to enforce transparency across the Nigerian capital market.

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Capital Market

Leadway Pensure’s First Bank Shares Belong to RSA Owners – PenCom

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FirstBank Headquarter - Investors King

The National Pension Commission (PenCom) has confirmed that any funds that have been invested in First Bank Holdings Ltd (FBNH) by Leadway Pensure Ltd belong to holders of Retirement Savings Accounts (RSA).

This has apparently silenced any claims that Tunde Hassan-Odukale and some entities related to him own a 5.36% stake in First Bank, which would have made Hassan-Odukale the single, largest shareholder in the company.

It seemed to be competitive, as after popular billionaire business Femi Otedola acquired a 5.07% stake in the bank, company secretary Seye Kosoko wrote to the Nigerian Exchange Limited (NGX), signing off Leadway Pensure PFA’s (Pension Fund Administrator) whole 2.11% stake to Tunde Hassan-Odukale.

After this, Kosoko was also responsible for listing 1.36% of the investment stated as “ZPC/Leadway Assurance Prem & Inv Coll Acct” in the favour of Hassan-Odukale.

The clarification from PenCom confirmed that the shareholding which has been ascribed to Hassan-Odukale will most likely be reduced to not up to 4%, with Leadway Pensure’s stake in the bank being classified.

PenCom issued a statement on Friday which stated that it did not break any laws by investing in First Bank, contrary to reports circulating the media.

The Pension Commission however said that any equity investments made by Leadway Pensure in FBN Holdings on behalf of the pension funds which it manages are in the name of the pension fund and belong to the RSA. It went further to state that the investments cannot be considered shareholdings of any party related to the PFA.

The Commission’s statement attributed the media reports to the lack of knowledge of the Investment Regulation which was issued by the Commission.

The Commission made reference to records held by the Securities and Exchange Commission, which confirm that the equity investments in FBN Holdings are made in the name of the Pension Fund for RSA holders.

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