MTN Nigeria Communications Plc is seeking to raise up to N50.0bn in Series 1 and Series 2 Commercial Paper issuance under its N100.0bn Commercial Paper (“CP”) Programme in order to support its working capital and general corporate purposes.
The minimum investment for the offer is N1 million, with the 180-day tenor having an effective yield of 4.8% – 5% and the 270-day tenor having an effective yield of 5.85% – 6%.
The offer opened yesterday May 28, and will close on Thursday June 04. MTNN is a pretty pristine borrower with solid balance sheet so default risk is near zero, which is why the yield is just above the sovereign benchmarks.
Here is all you need to know about commercial papers.
This issuance under the CP Programme marks MTN Nigeria’s debut in the domestic debt capital market.
MTNN 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 (c. 70 million), active data users (c. 26.8 million), revenue (almost 50.0% of industry), and profit pool.
MTNN is well positioned for the long term with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network (c. 29,000km) that spans across Nigeria.
It has the largest physical and digital distribution platform, and wide range of spectrum holdings – and the exciting market opportunity Nigeria brings.
Mobile voice and data subscription will continue 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 recent COVID-19 environment, MTNN has continued to sustainably add new subscribers, and customer voice and data usage remains resilient.
MTNN has also rewarded investors handsomely lately.
See terms of the offer below :