By Susan Olalere MTN Nigeria, the leading mobile network operator in the country, has successfully raised ₦75 billion through its Commercial Paper Issuance Program, marking a significant milestone amid a challenging financial landscape.
The funds, part of the Series 11 and 12 issuances under MTN Nigeria’s ₦250 billion Commercial Paper Program, will support the company’s daily operations and address immediate financial obligations. Initially targeting ₦50 billion, the offering was oversubscribed at 150%, reaching ₦75.18 billion, according to a filing with the Nigerian Exchange (NGX).
Investor Confidence Shines Despite Financial Challenges
The overwhelming subscription signals strong investor confidence in MTN Nigeria’s long-term prospects, despite the company’s recent financial hurdles. For the nine months ending September 30, 2024, MTN Nigeria reported a loss after tax of ₦514.9 billion, attributed primarily to the Naira’s devaluation.
The telco also faced net foreign exchange losses of ₦904.9 billion, which significantly inflated its finance costs. However, service revenue surged by 33.6% year-on-year to ₦2.35 trillion, driven by:
• 52.3% growth in demand for data services.
• 18% rise in fintech services revenue.
Diverse Investor Participation in Commercial Paper Issuance
MTN Nigeria’s commercial paper attracted interest from a variety of institutional investors, including asset managers, banks, and insurance companies. However, pension funds were notably absent from the offering due to a temporary suspension by the National Pension Commission (PenCom), pending revised guidelines from the Securities and Exchange Commission (SEC).
This successful fundraising effort highlights MTN Nigeria’s resilience and strategic financial management during turbulent economic times. The company continues to leverage its market leadership to secure funding and deliver on its growth objectives, reinforcing its pivotal role in Nigeria’s telecom and tech ecosystems.
OpeOluwa Okudero
Leave feedback about this