MTN Nigeria completes N100bn debut commercial paper issuance

MTN Nigeria, the leading telecommunications provider in Nigeria, has successfully completed its debut 100 billion Naira Series one and two commercial paper issuance. The issuance was oversubscribed by an impressive 400%, showcasing strong investor confidence in the company's financial health and market position amidst the ongoing challenges posed by the COVID-19 pandemic. Modupe Kadri, the Chief Financial Officer of MTN Nigeria, highlighted the reasons behind the decision to tap into the capital markets at this time and the strategic utilization of the funds raised. Kadri emphasized that one of the primary motives for accessing the capital markets was to diversify the company's funding sources and take advantage of favorable market conditions. The timing was deemed optimal, considering the competitive rates available in the market and the need to bolster working capital requirements. By issuing commercial papers, MTN Nigeria aimed to establish a benchmark in the market and optimize its finance costs for the benefit of shareholders. The market response to MTN Nigeria's commercial papers was overwhelmingly positive, with the initial 100 billion Naira offering attracting nearly 200 billion Naira in subscriptions. The strong demand reflected investor confidence in the company's brand, track record, and management team. The oversubscription signaled a vote of confidence in MTN Nigeria's growth prospects and strategic direction, positioning the company as an attractive investment opportunity in the market. The funds raised through the commercial paper issuance will primarily be utilized for working capital purposes, particularly to address the challenges posed by the COVID-19 pandemic. Kadri highlighted the importance of ensuring operational efficiency and continuity in service delivery, especially amidst supply chain disruptions and increased demand for telecommunications services. By optimizing working capital requirements, MTN Nigeria aims to enhance its resilience and ability to meet the evolving needs of its customers. In conclusion, MTN Nigeria's successful debut in the commercial paper market not only underscores the company's financial strength and market standing but also reflects the confidence of investors in the long-term growth potential of the telecommunications industry in Nigeria. The strategic decision to tap into the capital markets at this time demonstrates MTN Nigeria's proactive approach to managing financial resources and navigating challenges, ultimately positioning the company for sustainable growth and value creation in the evolving business landscape.