MTN Nigeria raises ₦75bn in oversubscribed commercial paper
While the company intended to raise ₦50 billion, the offering was oversubscribed, reaching 150% with ₦75.18 billion issued, according to a filing with the Nigerian Exchange (NGX) on Friday.
MTN Nigeria, the country’s largest mobile network operator, has raised ₦75 billion through its commercial paper issuance program. The funds will support daily operations and meet immediate financial obligations.
This concludes the Series 11 and 12 issuances under MTN Nigeria’s ₦250 billion Commercial Paper Issuance Programme. Initially targeting ₦50 billion, the offering was oversubscribed, reaching 150% with ₦75.18 billion issued, according to a filing with the Nigerian Exchange (NGX) on Friday.
The oversubscription reflects strong investor confidence in the company despite a challenging financial year. MTN Nigeria reported a loss after tax of ₦514.9 billion for the nine months ending September 30, 2024, primarily due to the devaluation of the Nigerian Naira. The company faced net foreign exchange losses of ₦904.9 billion, significantly raising finance costs.
Despite these setbacks, MTN Nigeria recorded robust growth in service revenue, which increased by 33.6% year-on-year to ₦2.35 trillion for the period. The growth was driven by a 52.3% surge in demand for data services and an 18% rise in fintech services.
The commercial paper issuance attracted participation from asset managers, banks, insurance companies, and other institutional investors. However, pension funds were excluded due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission.
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