Economy
MTN Nigeria Communications Plc (MTN Nigeria) has completed its N115 billion Series 1 Fixed Rate Bond issuance, which was 1.68 times oversubscribed.
It represents MTN Nigeria’s first issuance under its new N200 billion bond programme and third bond issuance in the Nigeria debt capital markets.
The book build for the dual-tranche (four-year Tranche A and 10-year Tranche B) bond issuance commenced on September 15 and closed on September 21 with a total value of N168.54 billion in bids received, representing a 1.68 times oversubscription (of the intended N100 billion issuance).
The offer was well received with active participation from a diverse range of investors, including pension funds, insurance companies, assets managers, other financial institutions, and high net-worth individuals.
The Series 1 Tranche A and Tranche B Bonds were issued at a clearing coupon of 13.50% and 14.50%, respectively.
Of the total qualifying bids, MTN Nigeria opted to issue a combined value of N115 billion across both tranches — N10.09 billion in the four-year Tranche A and N104.91 billion in the 10-year Tranche B.
Commenting on the Series I Bond issuance, Karl Toriola, Chief Executive Officer of MTN Nigeria, said: “We are very pleased with the outcome of our third outing in the domestic bond market.
“We appreciate the investor community for the strong show of support and consider this to be an affirmation of their belief in MTN Nigeria’s value proposition.
“The Nigerian capital markets continue to present us with the opportunity to raise long-term financing to aid investments in our network and diversify our funding sources.
“We are very proud of this transaction and thank all parties who contributed to ensuring a successful bond offer.
“The management of MTN Nigeria is firmly resolved in its strategy to add value to all stakeholders and the growth of the Nigerian telecoms industry.”
Chapel Hill Denham Advisory Limited acted as the Lead Issuing House/Bookrunner, while Vetiva Capital Management, Absa Capital Markets Nigeria Limited, FCMB Capital Markets Limited, Rand Merchant Bank Nigeria Limited, Renaissance Securities (Nigeria) Limited, Stanbic IBTC Capital Limited and United Capital Plc acted as Joint Issuing Houses.
-Vanguard
KN
Tags: Karl Toriola MTN Nigeria Communications PLC
