MTN Nigeria begins N100 bn commercial paper issuance

Adebayo Obajemu

The much expected MTN Nigeria Communications Plc’s  proposed Commercial Paper Issuance Offer began Tbursday and is expected  to close on Thursday, June 4, 2020.

The Commercial Paper (CP) Issuance (Series 1 & 2 of N50 billion each)  under its N100 billion CP issuance programme has attracted wide publicity prior to issuance on Thursday.

In a statement issued by the company, the telco explained that the issuance has a tenor of 180 days (CP 1) and 270 days (CP 2) with a discount rate of 4.6890% – 4.8797% (CP1)  and 5.8500% .

Analysts say the issuance is crucial to the telco, as it is expected to use the proceeds for its working capital and general corporate purposes in Nigeria. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market