MTN Nigeria Communications Plc has announced plans to raise another N200 billion from the capital market via bond issuance.
The leading telecommunication company announced in a statement signed by Uto Ukpanah, Company Secretary.
According to MTN, the Securities and Exchange Commission (SEC) has registered the new bond issuance programme. It should be recalled that the company first announced this new bond in July 2022.
MTN Nigeria has now received SEC’s approval to launch the Series I (Tranche) 4-Year Fixed Rate Bond and Series I (Tranche B) 10-Year Fixed Rate Bond (the “Issuance”) under the programme. The issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources in line with its corporate objectives.
MTN Nigeria will launch the book build in respect of the Series I (Tranche A and B) Bond on 15 September 2022.
In the statement released in July 2022, the company described the new bond as a follow-up to the N200 billion debut bond issued in 2021 under the company’s N110 billion 13% 7-year series I bonds due 2028 and N90 billion 12.75% 10-year series II bonds due 2031.
The telecoms giant said the fund raised from the bond issuance will be used to finance capital expenditures like network expansion, working capital management, and general corporate purpose.
“The company will decide on issuances under the Second Bond Issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals,” the company concluded.