Grace Ashiru
Telecoms giant MTN Nigeria has raised 125 billion ($302 million) through a commercial paper issuance to meet its short-term working capital and funding needs.
As part of MTN Nigeria’s plan to issue 150 billion worth of commercial paper, the company sold a 188-day commercial paper with an 11% yield and a 267-day commercial paper with a 12.5% yield.
The company said it wanted to raise 100 billion, but it received 125 billion in orders, meaning the offering was 125% oversubscribed.
This isn’t the first time MTN Nigeria has used commercial paper issuance to get money. In April 2022, the company signed a contract to issue 127 billion worth of series 1 and 2 commercial papers. This was the most significant debt instrument ever published in the country.
The company’s CEO at the time, Karl Toriola, said that the CP was part of a plan to give MTN Nigeria more ways to get money.
The most recent offering will increase MTN Nigeria’s working capital and other general business purposes. The company’s secretary, Ufo Ukpanah, signed a statement that said the issuance was 125% oversubscribed to use the money for short-term working capital and funding needs.
