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
Tunisia has digitized about 3.6 million documents out of 5.2 million archive boxes. Authorities identify audiovisual archives as a priority due to...
15 Nigerian states scrap telecom right-of-way charges to boost fiber rollout Policy linked to faster expansion and improved network quality 21 states...
Libya NOC explores private-sector partnerships in refining and downstream sectors Talks target capacity expansion, gas use optimization, and reduced...
Burkina Faso engages Italian investors to advance digital transformation plans Talks focus on drones, data systems, and public-private...
Most Read
01

(EBID) - EBID aims to allocate nearly 41% of its commitments to projects with environmental and...

EBID makes giant strides for a green transition in west africa
02

Mobile phones have become essential tools for work, education, payments and staying connected across...

EU Mandates Removable Phone Batteries. What It Means for Africa’s Device Market 
03

Ecobank Transnational Incorporated asked shareholders to vote on a $500 million Tier 2 Eurobond...

Ecobank Calls Vote on a New $500 Million Bond, With Eyes on a June 2026 Capital Cliff
04

Africa produces what it doesn’t consume, and consumes what it doesn’t produce. That stark line captu...

“Private Investors Are Not Philanthropists: Risk Must Be Shared” — Tarek Toko Chabi, BOAD
05

Funding part of $250 million raise to boost investor confidence Fintech expands services, pr...

Nigeria Approves $75 Million Investment in Flutterwave Ahead of NGX Listing
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.