Connect with us

Capital Market

MTN Nigeria Borrows N125 Billion from Debt Market Via Commercial Paper

Published

on

MTN Nigeria - Investors King

Africa’s leading telecommunications giant, MTN Nigeria has successfully borrowed N125 billion from Nigerians via sales of commercial paper, a document has shown.

In the document obtained by Investors King on Tuesday, the commercial paper was issued under MTN Nigeria’s N150 billion Commercial paper issuance Programme. The company had set out to raise N100 billion but recorded an oversubscription of 25%, to raise a total of N125 billion.

Commercial paper is a debt instrument issued by corporations to raise money to finance short-term liabilities

The commercial papers were issued with a maturity of 188 days and a yield of 11.00%, as well as commercial papers with a maturity of 267 days and a yield of 12.50%.

This issuance of commercial papers is in line with MTN Nigeria’s strategy to broaden its funding sources. According to the document, funds generated from this issuance will be used to support the company’s short-term working capital and funding needs.

“MTN Nigeria Communications PLC (MTN Nigeria) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 4 & 5 Commercial Paper issuance under its Nl50 billion Commercial Paper Issuance Programme (the CP Issuance).

“MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, with a total of A125 billion raised.

“MTN Nigeria issued 188-day commercial papers at a yield of 11.00% and 267-day commercial papers at a yield of 12.50%. The CP Issuance was completed on 1 March 2023.

“The CP Issuance is part of MTN Nigeria‘s strategy to diversity its funding options. The proceeds will be utilised for its short-term working capital and funding requirements,” the document reads.

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.

Continue Reading
Comments

Capital Market

Africa Finance Corporation Returns to Global Debt Capital Markets with Oversubscribed Five-Year US$500m Eurobond

Published

on

Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, today announced an outstanding return to the global debt capital markets, successfully issuing a US$500 million 144A/Reg S Eurobond.

The benchmark five-year Note, issued at par with a coupon of 5.55%, had a negative concession with pricing inside the Corporation’s outstanding yield curve, resulting in the tightest T-spread ever achieved by AFC on a 5-year US dollar benchmark and enabling AFC to broadly reset its yield curve in the secondary market.

The issuance generated significant interest across Europe, Asia, United States, and the Middle East, resulting in a peak book that was over two and a half times oversubscribed.

“After about three years of absence from the Eurobond market, we are proud of the overwhelmingly positive reception for this bond issuance, which underscores the global capital market’s continued confidence in AFC’s credit story, our holistic investor engagement strategy and support for our mandate to develop and finance infrastructure projects that will enable Africa’s sustainable industrialization and prosperity,” said Samaila Zubairu, President & CEO of AFC. “The significant oversubscription and success of this bond issue is an endorsement of our impressive financial performance, business strategy, conservative financial policies and our impact in leading transformative change in Africa.”

With an order book exceeding US$1.2 billion, the bond drew high-quality investors seeking exposure to investment-grade issuers like AFC.

The Corporation’s consistent A3 credit rating, upheld since 2014 and recently reaffirmed by Moody’s, with a rating outlook change from Negative to Stable, further boosted the bond’s appeal among institutional investors.

The breakdown of the order book reflected AFC’s very strong capital market access, with final allocation of Europe: 57%; North America: 23%; Middle East: 15%; and Asia: 5%.

The Eurobond was issued under AFC’s $5 billion Global Medium-Term Note (GMTN) programme. The proceeds from the bond, listed on the Euronext Dublin and the London Stock Exchange, will support AFC’s mission to drive rapid industrialisation and accelerate development impact across Africa.

Banji Fehintola, Executive Board Member and Head of Financial Services, commented: “The success of this bond signals more than just strong market access for AFC; it represents a gateway for other African issuers to follow suit. Despite market volatility, our ability to secure this level of demand affirms the resilience of AFC’s credit profile and opens new doors for Africa’s infrastructure financing.”

The issuance was coordinated by a consortium of global financial institutions, including BofA Securities, Citigroup, First Abu Dhabi Bank, and Goldman Sachs International as Global Coordinators and Joint Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint Bookrunners.

Continue Reading

Capital Market

Ecobank Set to Raise Capital with US Dollar-Denominated Senior Unsecured Notes Offering

Published

on

Ecobank - Investors King

Ecobank Transnational Incorporated, a leading pan-African banking group with presence in 35 African countries has announced plans to raise funds through issuance of 5-year US dollar-denominated senior unsecured notes.

In the regulatory filing obtained by Investors King, Ecobank said it has mandated Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners.

The group also appointed Renaissance Capital Africa as Financial Adviser to organise a Global Investor Call as well as a series of fixed investor calls and meetings commencing on Monday 30 September 2024.

According to the lender, this will be followed by a 144A/RegS US$-denominated benchmark 5-year senior unsecured notes offering.

The notes are expected to be rated B- by S&P and B3 by Moody’s, said Ecobank.

Ecobank Transnational Inc. is a leading independent regional banking group in West Africa and Central Africa, serving wholesale and retail customers.

Continue Reading

Capital Market

Fixed Income Market Turnover Sees 30.47% Decline Despite Bond Activity

Published

on

Bonds- Investors King

In June 2024, the FMDQ Securities Exchange reported a 30.47% decline in the fixed-income market turnover from the previous month.

Despite this downturn, bond trading showed resilience, particularly in the Other Bonds category, which saw a 60.51% increase.

The overall turnover for fixed income products, including FGN Bonds and T-Bills, fell to N7.72 trillion.

This decrease was attributed to lower trading volumes across all major categories, although bond activity remained a bright spot.

Trading intensity for FGN Bonds and T-Bills slightly decreased, reflecting reduced investor activity.

However, T-Bills with maturities between six months and a year, alongside FGN Bonds with terms between five and ten years, were the most traded, accounting for a significant portion of the market turnover.

The sovereign yield curve continued its inversion trend, with real yields staying negative due to inflation outpacing policy interest rates.

The money market also experienced a decline, with turnover dropping by 34.50% to N8.22 trillion. Repos and unsecured transactions were primarily responsible for this decrease.

Conversely, the FX derivatives market saw growth, rising by 43.20% due to increased FX swap activities, despite a downturn in FX forwards.

These fluctuations highlight the ongoing challenges in Nigeria’s financial markets, with inflation and currency depreciation posing significant hurdles.

The decline in turnover suggests cautious investor sentiment amidst an uncertain economic landscape.

Despite these challenges, certain segments like bond trading and FX derivatives continue to show potential, offering avenues for strategic investment and market stability.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending