MTN Nigeria Communications (MTN Nigeria) Plc is concluding arrangements to raise about N200 billion under a new capital raising programme.
MTN plans to issue two tranches of bonds ranging from four to 10 year tenors to raise new funds to partly finance its expansionary drives and further deepen its balance sheet for stable growth.
While the opening date for the new bond issue is yet to be decided, sources yesterday said the new capital raising would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high networth investors.
MTN will use the net proceeds of the new bond issue to support its capital expenditure, working capital and other general corporate purposes.
Under the arrangements, MTN will offer a tranche of four-year bonds and another tranche of 10-year bonds; all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.
The bond will be offered at a par value of N1000 with minimum subscription of 10000 or N10 million. The new bonds are expected to be listed on the FMDQ Securities Exchange Limited after the completion of the issuance.
Market analysts said they expected the offer to be fully subscribed citing MTN Nigeria’s industry position and rating. The telecommunication group is rated AAA by Global Credit Rating )GCR) and Aa+ by Agusto & Co. Limited, underlining its strong financial position.
MTN has been active in the domestic capital market this year; leveraging its strong market position to access funds. It had in May successfully raised N127 billion new debt capital, placing it in better position to diversify its capital funding.
MTN had issued two commercial papers worth N127 billion. The two issuances were under its N150 billion commercial paper (CP) issuance programme. The net proceeds of the CPs were used by MTN Nigeria to support its short-term working capital and funding requirements.
percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67.
Half-year results for 2022 showed profit after tax of N181.63 billion; representing 28.06 per cent growth in net profit. Total assets stood at N2.53 trillion; an increase of 16.44 per cent. Recent reports estimated that MTN Nigeria has 74.1 million mobile subscribers and 36.8 million active data users.
Market analysts said MTN Nigeria was well positioned for long-term sustainable growth due to its infrastructure investments; including the impending deployment of 5G technology due to commence this quarter. It already has 90.01 per cent 2G population coverage, 82.63 per cent 3G population coverage, and 70.75 per cent 4G population coverage.
