(Ecofin Agency) - Mobile operator MTN Nigeria is seeking 200 billion naira ($489 million) on the local capital market. The company launched a new commercial paper program last week for this purpose. These are series 3 and 4, each worth 100 billion naira. The deal will close on March 19, 2021.
According to MTN Nigeria, the issue is being arranged by Chapel Hill Denham Advisory Limited. The minimum subscription amount is one million naira. The repayment period for the series 3 debt is 180 days while that of the series 4 debt is 270 days.
The new commercial paper issue initiated by MTN Nigeria follows that in May 2020, still arranged by Chapel Hill Denham Advisory Limited. That time, the company was seeking 100 billion naira divided into series 1 and 2, which had been subscribed to 400% by investors, according to Modupe Kadri, MTN Nigeria's financial director.
The proceeds of the offering will be used for MTN Nigeria's working capital and general corporate purposes, MTN Group said. In its 2020 financial report, the telecom group said its Nigerian subsidiary's operating expenses amounted to nearly $2 billion, up 29.02% compared to 2019.