MTN Nigeria, part of the South Africa based telecommunication giant, has said its recent issuance of 100 billion in a series 1 and 11 of its commercial papers were 400 per cent oversubscribed
This signified by volume and bid, a strong reflection of investor confidence in MTN ability to continue to deliver on its strategic objectives and maintain leadership as well as the strong credit profile that supports the company’s ability to meet its debt service obligations.
MTN said the transaction was part of the company’s strategy to diversify its financing options with the funds being deployed towards working capital and general corporate purposes.
MTN said it initially set out to issue up to 50 Naira billion under the 100 billion CP programme, but with the oversubscription, it opted to issue up to 100 billion limit of the registered CP programme with active participation from a diverse orbit of the eligible individual and institutional investors which include pension fund administrators, asset managers, and other financial institutions.
Ferdinand Moolman, CEO of the MTN Nigeria, said, “The 100 billion issue is the largest debut commercial paper issued by Nigeria corporate. It allows us to broaden our sources of funding and combines our established lines of credit with access to capital market funding which will lower our overall cost of borrowing.”
