MTN Nigeria completes issuance of N110bn bonds

MTN Nigeria Communications Plc said on Thursday that it had successfully completed the issuance of N110,001,000,000 Series 1 7-year 13.0 per cent Fixed Rate Bonds due 2028, under a N200bn bond programme.

The telecommunications company described the Series I Bond as the largest corporate bond issuance in the debt capital markets thus far in 2021 and its debut in the domestic bond market.

It said the Book Build process in respect of the transaction launched on April 9 and was completed on April 16, adding that the transaction was well received with active participation from a wide range of high-value and quality investors.

The total value of orders received during the Book Build was N132,151,000,000, representing a 1.32 times oversubscription of the intended N100bn issuance. The issue was launched at a clearing coupon of 13 percent.

“We are very proud of this landmark transaction, which is the first-ever telco bond issued in Nigeria and the largest corporate bond issuance this year,” the Chief Executive Officer, Karl Toriola, said.

He said the domestic debt capital market has given the company the opportunity to further diversify its funding sources and extend the maturity of its debt portfolio and profile to match investment in infrastructure.

“The strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, and investor confidence in MTN Nigeria’s long-term strategy, our management team and the overall telecoms industry,” he added.

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