Table of Contents
Key Points
- MTN Nigeria raised $46.6 million through Series 13 and 14 Commercial Paper issuances, part of a N250 billion program.
- The issuance saw 144% oversubscription, raising N72.18 billion ($46.6 million), exceeding initial targets amid strong investor demand.
- Despite reporting a loss for the nine months ending Sept. 30, 2024, MTN continues to expand, acquiring remaining MoMo stake.
MTN Nigeria, the largest telecommunications company in Nigeria led by leading business executive Karl Toriola, has successfully concluded its Series 13 and 14 Commercial Paper (CP) issuance, raising $46.6 million as part of its broader financing strategy.
The issuance forms part of the company’s N250-billion ($151.9 million) commercial paper program, under which MTN initially planned to raise N50 billion ($30.4 million). However, the offering was met with overwhelming demand, leading to a 144% oversubscription and a total of N72.18 billion ($46.6 million) issued.
Demonstrating robust market confidence
The commercial papers, which have maturities of 180 and 270 days, were priced at yields of 27.5 percent and 29 percent, respectively, with an issue date of Nov. 29, 2024. This follows a previous CP issuance of N75.18 billion ($45.6 million) on Nov. 7, 2024, underscoring robust investor confidence in MTN Nigeria’s financial health and operational leadership. The funds raised will be used to support the company’s short-term working capital needs.
Karl Toriola, CEO of MTN Nigeria, expressed satisfaction with the overwhelming support from investors, highlighting the 144% subscription rate and the diverse participation across investor types. "This success reinforces MTN Nigeria’s financial stability, brand strength, and market leadership, particularly amid challenging macroeconomic conditions," Toriola stated.
Stanbic IBTC Capital Limited led the issuance as the Arranger and Dealer, with several prominent financial institutions acting as joint dealers, including CardinalStone Partners, Chapel Hill Denham, Cordros Capital, and FCMB Capital Markets, among others.
Expanding footprint despite financial losses
MTN Nigeria, an operating company (opco) of MTN Group, Africa’s leading mobile network operator, offers a comprehensive suite of telecommunications services, including mobile network access, internet connectivity, bill payments, and device financing solutions.
Under Toriola's leadership, the company reported a loss after tax of N514.9 billion for the nine months ending September 30, 2024, a 3.3 percent increase from the N15.0 billion ($9.7 million) loss reported in the same period last year.
Despite these challenges, MTN Nigeria is expanding its footprint in Nigeria’s financial services sector, having recently acquired the remaining 7.17 percent stake in MoMo Payment Service Bank for N6.95 billion ($4.16 million).
