MTN Nigeria, the country’s largest mobile network operator, has successfully raised ₦75 billion through its commercial paper issuance program. The funds will be utilized to support daily operations and meet immediate financial obligations.
This marks the conclusion of the Series 11 and 12 issuances under MTN Nigeria’s ₦250 billion Commercial Paper Issuance Programme. Initially targeting ₦50 billion, the offering was significantly oversubscribed, reaching 150% with a total of ₦75.18 billion issued, as per a filing with the Nigerian Exchange (NGX) on Friday.
The oversubscription demonstrates strong investor confidence in MTN Nigeria despite a challenging financial year. The company reported a loss after tax of ₦514.9 billion for the nine months ending September 30, 2024, primarily due to the devaluation of the Nigerian Naira. This devaluation led to net foreign exchange losses amounting to ₦904.9 billion, which significantly increased finance costs.
Despite these financial setbacks, MTN Nigeria achieved robust growth in service revenue, which rose by 33.6% year-on-year to ₦2.35 trillion for the period. This growth was driven by a 52.3% surge in demand for data services and an 18% increase in fintech services.
The commercial paper issuance attracted a diverse range of participants, including asset managers, banks, insurance companies, and other institutional investors. However, pension funds were excluded from participating due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission.
