Telecoms giant MTN Nigeria has raised ₦125 billion (~$302 million) through a commercial paper issuance to promote its short-term working capital and funding requirements.
The issuance, part of MTN Nigeria's ₦150 billion commercial paper issuance programme, comprised a 188-day commercial paper at a yield of 11% and a 267-day commercial paper at a yield of 12.5%. The company said it sought to raise ₦100 billion but received subscriptions worth ₦125 billion, indicating the offering was 125% oversubscribed.
This is not the first time MTN Nigeria has raised money through commercial paper issuance. In April 2022, the company signed the issuance of ₦127 billion series 1 and 2 commercial paper, the largest such debt instrument to be issued in the country. The CP is part of a strategy to diversify MTN Nigeria's financing options, said Karl Toriola, the company's CEO at the time.
The latest issuance will go into boosting MTN Nigeria's working capital and other general corporate purposes. The company's statement signed by its secretary Ufo Ukpanah, added that the issuance was 125% oversubscribed to enable it to disburse the fund on short-term working capital and funding requirements.