Telecom

MTN Nigeria Raises $45 Million Through Oversubscribed Commercial Paper Issuance

MTN Nigeria Raises $45 Million Through Oversubscribed Commercial Paper Issuance
Monday, 18 November 2024 09:08

As Nigeria's largest mobile network operator, MTN plays a crucial role in connecting subscribers to voice, data, and fintech services. Its operations extend beyond telecommunications, making it a key driver of the country’s digital transformation.

MTN Nigeria announced on Friday, November 15, that it has successfully raised ₦75.18 billion ($45 million) through its commercial paper issuance program, exceeding its initial target of ₦50 billion. The funds will be used to meet the company's short-term working capital needs.

“MTN Nigeria Communications PLC (MTN Nigeria (the Company) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 11 and 12 Commercial Paper (CP) issuance under the company’s ₦250 billion Commercial Paper Issuance Program,” a release signed by Company Secretary Uto Ukpanah stated.

The offering was oversubscribed by 150%, signaling strong investor confidence in MTN Nigeria despite a challenging financial environment. The issuance attracted a diverse range of investors, including asset managers, banks, and insurance companies. However, pension funds were notably absent due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission. 

The oversubscription of the commercial paper underscores robust investor trust in MTN Nigeria’s long-term potential. The company’s focus on expanding its digital and financial services offerings continues to attract attention. 

During MTN Nigeria's Q3 2024 Investor Call on October 31, the company reported a robust 33.6% increase in service revenue. This growth was fueled by a 9.8% rise in voice traffic, a significant 42.1% surge in data traffic, and a 5.1% increase in active users. 

The company also highlighted strong momentum in its fintech ecosystem, reflecting the growing demand for digital financial services. In terms of profitability, MTN Nigeria achieved a 5.6% increase in Q3 EBITDA and a 4.1% rise in profit after tax, underscoring its resilience. The results showcase the company’s ability to deliver growth and stability, making it an attractive investment and a pivotal player in Nigeria’s evolving digital economy.

MTN Nigeria’s ability to secure such significant funding reflects its solid market position and underscores the appetite for high-quality corporate debt instruments in Nigeria’s financial markets.

Hikmatu Bilali

On the same topic
MTN South Sudan cuts service prices by 25%, minister says Government presses operators to further reduce internet costs ITU says mobile internet...
MindHYVE.ai and IUCEA partner to expand AI training across 170+ East African universities Agreement provides access to advanced agentic-AI tools,...
Ethiopia will use digital platforms to register voters and candidates for the 2026 elections NEBE has deployed online tools, mobile apps, call centers,...
Mauritius will require foreign digital service providers to charge and remit 15% VAT from 1 January 2026. Companies earning more than MUR 3...
Most Read
01

Omer-Decugis & Cie acquired 100% of Côte d’Ivoire–based Vergers du Bandama. Vergers du Band...

Omer-Decugis & Cie Expands Mango Operations in West Africa
02

Benin says a coup attempt was foiled, crediting an army that “refused to betray its oath.” ...

Benin Government Says Attempted Coup Against President Talon Has Been Foiled
03

Eritrea faces some of the Horn of Africa’s deepest infrastructure and climate-resilience gaps, lim...

AfDB Re-engages Eritrea With Strategy Focused on Infrastructure, Climate Resilience and Regional Integration
04

In Cotonou, Benin’s economic capital and home to the country’s leading institutions, the situation r...

Calm in Cotonou - Benin After Coup Announcement on State Owned Television
05

GSMA outlines reforms needed to meet targets of the New Technological Deal 2034 High mobile taxes...

GSMA Maps the Reforms Required for Senegal’s Digital Takeoff
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.