MTN Nigeria Communications Plc has notified the Nigerian Exchange and the investing public of the successful completion of its Series 11 and 12 Commercial Paper (CP) Issuance under the Company’s N250 billion Commercial Paper Issuance programme. The Company sought to raise N50 billion in the issuance; however, the offer recorded a 150% subscription with N75.18 billion issued.
The 181-day and 265-day CP were issued at yields of 27.50% and 29% respectively, with an issue date of Thursday, 7 November 2024. The 265- day Series 12 CP was priced broadly at par with the 364-day Nigeria Treasury Bill Instrument which closed at a yield of 29.84% during the auction held on Wednesday 6 November, 2024. This yield was 384 basis point higher than the closing yield at the auction two week earlier.
This represents a well-timed transaction for the Company, as interest rates are expected to rise further following the outcome of the auction as monetary policy authorities continue to address interest and exchange rate pressure.
The success of the transaction is further demonstrated by the level of oversubscription despite the absence of pension funds, following the recent suspension of their participation in Commercial Paper by the National Pension Commission pending the issuance of substantive guidelines by the Securities and Exchange Commission. The offer recorded participation from asset managers, banks, insurance companies and other qualified institutional investors.
The proceeds of the Issuance will be applied toward the Company’s short-term working capital requirements.