MTN Nigeria, a leading telecommunications provider, has successfully initiated a funding drive to raise N100 billion as part of its strategic efforts to enhance operational capabilities.
This funding is being secured through the issuance of Series 6 and 7 under the company’s established commercial paper programme.
The capital infusion is slated to fortify the company’s working capital reserves and serve various general corporate objectives.
A statement from Afrinvest, a prominent financial advisory firm, announced the commencement of the MTN Nigeria Communications PLC Series 6 & 7 Commercial Paper offering.
The offering, which commenced on August 16, 2023, is scheduled to conclude on August 21, 2023. Investors are presented with a compelling opportunity, with a yield of 10.88% for Series 6 and 11.25% for Series 7, resulting in yields of 115% and 12.25% respectively.
MTN Nigeria, a telecommunications powerhouse, holds a preeminent position in Nigeria’s communications landscape, boasting a subscriber base of over 77.1 million mobile users as of H1 2023.
This colossal market presence is underpinned by substantial investments in cutting-edge infrastructure, including an expansive 2G, 3G, and 4G network that covers 92.5% of 2G, 86.3% of 3G, and 80.0% of 4G population coverage.
Furthermore, the company boasts an extensive fiber network spanning over 35,000 kilometers and a diverse range of valuable spectrum holdings.
MTN Nigeria has consistently demonstrated its commitment to innovation by spearheading the launch of Nigeria’s first-ever 5G network.
This pioneering move has resulted in 5G coverage across key cities in all six geopolitical regions, achieving a population coverage of 5.5%.
The company’s influence extends to digital and financial inclusion, evidenced by a substantial user base of approximately 41 million active data users and 7 million active fintech users. This demographic engagement is particularly significant within Nigeria’s youthful and rapidly expanding population.
Notably, MTN Nigeria sustains its AAA rating from GCR, the highest attainable corporate rating, underscoring its robust competitive stance, strong earnings, and reliable cash flows.
The company also garners an Aa+ rating from Agusto, further validating its sound financial standing. These commendations are reflective of MTN Nigeria’s adept management team and its symbiotic association with the broader MTN Group.
The capital garnered from this offering will play a pivotal role in reinforcing MTN Nigeria’s working capital provisions and fulfilling overarching corporate objectives. The transaction underscores MTN Nigeria’s ongoing commitment to sustainable growth and resilience within the telecommunications sector.
