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  • MTN to Borrow N150bn from Local Investors Via CP Sales
  • MTN to Borrow N150bn from Local Investors Via CP Sales
    One of the leading GSM network providers, MTN Nigeria, has run to the Nigerian capital market to source about N150 billion from local investors through the sale of commercial papers.

    In a notice, the subsidiary of MTN Group said the funds raised from the exercise would be used “for working capital and general corporate purposes.”

    Business Post reports that subscription for the CP sales commenced on Tuesday, April 5, 2022, and will come to an end on Thursday, April 7, 2022.

    The company is issuing the papers in two series under its N150 billion Commercial Paper Issuance Programme.

    Details of the exercise indicated that series 1 has a tenor of 186 days and a discount rate of 6.5255 per cent and an implied yield of 6.7500 per cent, while series 2 has a tenor of 256 days and a discount rate of 7.3505 per cent and an implied yield of 7.7500 per cent.

    The offer, which comes with applicable taxes, including a withholding tax payment and VAT, has a minimum subscription of N5 million and N1 million thereafter.

    MTN Nigeria is a market leader in the telecommunications industry in the country, with extensive network coverage, a solid brand, high profitability, strong cash flow and a stable management team.

    The company commenced business in 2001 and today boasts 74.93 million subscribers, controlling 37.89 per cent of the total market share.

    It has a presence in about 4,000 towns across the country, with its fibre network infrastructure covering approximately 30,000km, the largest in the country.

    MTN Nigeria provides a wide range of service offerings to customers, including mobile voice, data, digital, and fintech services.

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