MTN Nigeria Communication Plc, a telecommunication service provider in Nigeria announced the completion of its (series 1 Bond) debt capital under the N200,000,000,000 Bond Issuance Programme. The company had earlier declared its intention to raise N100 billion in Series I of the registered Shelf program adding that the Series I Bond under its Bond Issuance program is the largest corporate bond issuance in the debt capital market thus far in 2021.
The company noted that its first appearance in the domestic bond market has established a strong commercial paper issuance with the Book Build process in respect of the transaction launched on 9th April 2021, completed on 16th April 2021 adding that the transactions were well received with active participation from a wild range of high valued investors which included pension funds, fund managers, banks, insurance companies, trustees, corporate and high net worth valued individuals.
MTN Nigeria Plc declared that the total value of order received during the Book Build was N132,151,000,000 issuance launched at a clearing coupon of 13.0% with N110,001,000,000 in qualified bids.
The company stated the Series I Bond Issuance will further reinforce MTN Nigeria’s strategy of diversifying its funding sources and reflects its market leadership and strong credit quality, as well as the resilience of the domestic debt capital market, adding that the net proceeds will partially be used to refinance existing debt and support the roll-out of critical network infrastructure.
Mr. Karl Toriola, Chief Executive Officer of MTN Nigeria in his statement “we are proud of this landmark transaction, which is the first-ever telco bond issued in Nigeria and the largest corporate bond issuance this year” while commenting on the bond issuance.
MTN Nigeria is the leading telecommunications operator in the largest telecoms market in Africa. The Company is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers (c. 76.5 million), active data users (c. 32.6 million)