MTN Finished Issuing N115 billion In Fixed Rate Bonds

MTN Finished Issuing N115 billion In Fixed Rate Bonds

The N115 billion Series 1 Fixed Rate Bond offering by MTN Nigeria Communications Plc (MTN Nigeria), which was 1.68 times oversubscribed, has been completed.

It is the third bond issuance in the Nigerian debt capital markets and the first under MTN Nigeria’s new N200 billion bond program.

With a total value of N168.54 billion in bids received between September 15 and September 21, the book build for the dual-tranche (four-year Tranche A and 10-year Tranche B) bond sale closed with a 1.68 times oversubscription (of the intended N100 billion issuance).

A wide variety of investors, including pension funds, insurance firms, asset managers, other financial institutions, and high net worth individuals, responded favorably to the offer and participated actively.

The clearing coupons for the Series 1 Tranche A and Tranche B Bonds were 13.50% and 14.50%, respectively.

MTN Nigeria chose to issue a combined value of N115 billion over both tranches, or N10.09 billion in the four-year Tranche A and N104.91 in the 10-year Tranche B, out of the total qualifying bids.

Karl Toriola, the CEO of MTN Nigeria, commented on the Series I Bond offering and 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.”

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 served as Joint Issuing Houses, Chapel Hill Denham Advisory Limited served as the Lead Issuing House/Bookrunner.

 

 

 

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