FRI 05 NOV, 2021- theGBJournal- MTN Nigeria Communications Plc Thursday announced it has successfully completed the issuance of its N89.999 billion Series 11 10-year 12.75% Fixed Rate Bonds due 2031 under its N200 billion Bond Issuance Programme.
The Series 11 Bond is the second Issuance in 2021 by the telecoms giant following the successful debut in May 2021, and this now completes MTNN’s N200 billion bond issuance programme which was fully subscribed.
‘’We continue to be grateful to the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network,’’ said Karl Tariola, Chief Executive Officer of MTN Nigeria.
He said the bonds issued this year enabled the company to diversify funding sources and extended the maturity profile of the company’s debt portfolio.
‘’We are very proud of this landmark and thank the investor community for their continued confidence in the MTN Nigeria’s long-term strategy, our management team and the overall telecommunications industry.’’
The book build process for the bond began on 8 October 2021 and was completed on 15 October 2021.
‘’The offer was well received with active participation from a diverse range of high value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals,’’ MTNN said.
According to the company, during the book build, the total value of subscription received peaked at N133, 454, 000, 000, representing a 1.4 times over subscription.
‘’As a result, the Series 11 Bond was launched at a clearing coupon of 12.75% with N89, 999, 000, 000 in qualified bids.’’
The successful issuance reflects MTNN’ s strong credit ratings, which was recently upgraded to AAA, investor confidence in its ability to maintain market leadership in the telecoms industry, and the debt of the domestic capital market.
The net proceeds, MTNN said, will be used to optimise its capital structure and finance net work expansion.
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