MTN Nigeria Communications PLC has announced the successful completion of its Series 11 and Series 12 commercial paper issuances, raising an impressive N75.18 billion, above its initial N50 billion target.
This achievement forms part of the company’s extensive N250 billion Commercial Paper Issuance Programme.
The notification, signed by company secretary Uto Ukpanah and published on the Nigerian Exchange (NGX) disclosure platform, highlighted robust market response, with 150 per cent subscription achieved despite a challenging investment climate.
Industry analysts have lauded the strategic timing of the issuance, noting that it aligns with macroeconomic conditions marked by rising interest rates.
Dr. Emeka Okoro, an economist specializing in corporate finance, observed, “MTN Nigeria’s decision to issue the papers now reflects acute market awareness. The current period of tight monetary policy has made high-yielding instruments more attractive, drawing in substantial investor interest.”
The issuance of the 181-day and 265-day commercial papers came with competitive yields of 27.50 per cent and 29.00 per cent, respectively.
The 265-day paper was particularly notable for aligning closely with the yield on the 364-day Nigerian Treasury Bill, which reached 29.84 per cent at an auction held just a day prior.
This represented a 384-basis point increase from the previous auction’s close, underscoring a significant recalibration of market interest rates.
Financial analyst Chinedu Alake noted, “This upward trend in rates showcases investor expectations of further tightening by monetary authorities as they grapple with inflation and exchange rate volatility.”
Despite the absence of pension funds due to a regulatory pause by the National Pension Commission (PenCom), which awaits new guidelines from the Securities and Exchange Commission (SEC), the issuance managed to secure broad participation from other investors.
MTN Nigeria’s success in this context underscores its strong market positioning and investor confidence.
The funds raised will play a critical role in enhancing MTN Nigeria’s operational capacity and strategic growth.
Specifically, the proceeds are slated to bolster short-term working capital, facilitate infrastructure expansion, and support improved service delivery to meet increasing nationwide demand for telecommunications and digital services.
Financial strategy consultant Lara Hassan commented, “This move not only diversifies MTN’s funding sources but also underscores a proactive approach to capital management amid economic headwinds.”
MTN Nigeria’s adept navigation of the debt market reflects its commitment to maintaining a balanced financial structure while seizing opportunities for operational efficiency and market growth.
The company’s effective use of commercial paper aligns with broader efforts to sustain leadership in the telecom sector through continuous investment in infrastructure and service enhancement.