MTN Nigeria debut CP oversubscribed by 400%

MTN Nigeria Telecommunication Limited has announced the successful completion of it’s debut Commercial Paper (CP), the largest debut CP by any corporate Nigeria.

According to the telecomunication giant, the series I & II CP program of N100 billion, was to be issued at N50 billion under the N100 billion program but was over subscribed by 400% at the end of book build. MTN decided to issue the entire N100 billion limit of the registered program duly subscribed to by diverse eligible individuals and institutional investors .

The series I 180 days CP sized at N20 billion was cleared at an effective yield of 4.9% while the series II 270 days CP sized at N80 billion was cleared. at an effective yield of 5.59%.

According to MTN, ” The level of interest in MTN Nigeria’s debut in the Nigerian debt market (as measured by volume and value of bids) is a strong reflection of investor’s confidence in MTN’s ability to continue to deliver on its strategic objective and maintain market leadership as well as strong credit profile that supports the company’s ability to meet it’s debt obligations”

Commenting at the closure of book build Ferdinand moolman MTN Chief Executive Officer said “The N100 billion issued is the largest debut Commercial Paper by a Nigerian corporate, it enable us to broaden our source of funding and combine our established line of credit with access to capital market funding, which will lower our overall cost of borrowing“