MTN begins sales of bonds under its N200bn Commercial Paper

Banks disconnect MTN from banking channels

MTN begins sales of bonds under its N200bn Commercial Paper



MTN Nigeria Communications Plc Series III and IV Commercial Paper Issuance under its N200 billion Commercial Paper (CP) Issuance Programme is has opene.

The proceeds from the offer will be applied towards MTN Nigeria’s working capital and general corporate purposes, statement obtained on Sunday said.

The offer is scheduled to close on Wednesday, March 19, 2021.

MTN Nigeria is the leading telecommunications operator in the largest telecoms market in Africa.

The Company is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers of 76.5 million, active data users of 32.6 million, a revenue representing almost 50 per cent of the GSM segment and profit pool.

MTN Nigeria is well positioned for the long term with its investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network of 29,500km spanning across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – coupled with the Nigerian market opportunity.

Nigeria offers an attractive telco market proposition as Africa’s largest economy and most populous country.

Mobile voice and data subscription continues to be a major part of consumer spending, largely driven by increased adoption by the young population.

It is important to note that in the prevailing COVID-19 environment, MTN Nigeria continues to sustainably strengthen its subscriber base, while customer voice and data usage remains resilient.

MTN Nigeria was issued a corporate rating of Aa by Agusto & Co. which reflects the Company’s history of strong financial performance – record revenue in excess of N1 trillion (largest revenue by a listed corporate), stable and healthy operating profit metrics (c. +50% EBITDA margin), comfortably low leverage (0.4x Net Debt/EBITDA) predominantly in local currency, strong fee cash flow – its experienced and dedicated management team, and the beneficial relationship with MTN Group – Africa’s leading cellular telecommunications company servicing over 251 million subscribers, with strong presence in 21 countries (including the Middle East).

Please see above, the indicative terms of the Offer: