SiteLock
Financial Obligations Force MTN Nigeria To Borrow N125bn From Commercial Paper Investors

MTN Nigeria Debt Set To Rise, As SEC Approves New N100 billion Loan

2 years ago
1 min read

The Securities and Exchange Commission (SEC) has approved request by MTN Nigeria to register a new N200 billion Bond Issuance Programme, as the telecommunications firm seek new capital.

The GSM company,  in a statement released on Thursday, said it had registered the N200 billion Bond Issuance Programme, under which it will raise N100 billion, but it will launch Series I (Tranche A and B) Bond on 15 September 2022.

Join our WhatsApp Channel

“MTN Nigeria Communications Plc (MTN Nigeria) has completed registration with the Securities and Exchange Commission (SEC) of its new N200 billion bond issuance programme announced in July 2022.

“Consequently, MTN Nigeria has received SEC’s approval to launch the Series I (Tranche A) 4-Year Fixed Rate Bond and Series I (Tranche B) 10-Year Fixed Rate Bond under the programme. The Issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources in line with its corporate objectives.

READ ALSO: MTN 5G Broadband Sells At N50,000

“MTN Nigeria will launch the book build in respect of the Series I (Tranche A and B) Bond on 15 September 2022.” MTN told its shareholders and the investing public.

Prior to the recent request to register a new bond programme, MTN Nigeria had issued N200 billion bond last year, through which it borrowed N110 billion with a 13% rate due for 2028.

It also raised N90 billion with a rate of 12.75% and maturity due for 2031 to complete the N200 billion bond programme of 2021.

Note that as of December 2021, MTN Nigeria’s debt was N493,26 billion, but rose to N646.11 billion in the first half of this year. The new request to issue bonds to borrow N100 billion will further increase the debt profile of the company.

content

+ posts


MOST READ

Follow Us

Latest from Business

Why Inflation Is Rising Rapidly In Nigeria

Why Inflation Is Rising Rapidly In Nigeria

Inflation in Nigeria: An Alarming Trend Inflation in Nigeria has reached a staggering 33.88% in October, rising from 32.7% the previous month. This sharp increase, driven by factors like currency depreciation, escalating

Don't Miss