MTN to expand network, refinance debt with completed N110bn bonds

MTN to expand network, refinance debt with completed N110bn bonds

MTN Nigeria Communications Plc said on Thursday that it had successfully completed the issuance of N110 billion Series 1 seven-year 13 per cent Fixed Rate Bonds due 2028, under a N200 billion bond programme to refinance existing debt and support network expansion.

MTN Nigeria’s Chief Finance Officer, Modupe Kadri, said the company issued debt to optimise its funding costs.

He said the company was looking to repatriate $250 million in outstanding dividend to the group and was hopeful of getting substantial amounts through interventions with authorities.

“We are very proud of this landmark transaction, which is the first-ever telco bond issued in Nigeria and the largest corporate bond issuance this year,” the Chief Executive Officer, Karl Toriola, said.

He said the domestic debt capital market has given the company the opportunity to further diversify its funding sources and extend the maturity of its debt portfolio and profile to match investment in infrastructure.

“The strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, and investor confidence in MTN Nigeria’s long-term strategy, our management team and the overall telecoms industry,” he added.

Last week, MTN said its first-quarter pretax profit rose by 33.9 per cent and that it had registered 35 million subscribers.