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.