MTN Nigeria Proposes N72.1 Billion Series 10 Commercial Paper: Funding Diversification Strategy Revealed
MTN Nigeria Communication Plc has unveiled plans to issue up to N72.1 billion in Series 10 commercial paper notes, part of its N250 billion commercial paper issuance initiative. The company's strategy, as outlined by Uto Ukpanah, Company Secretary, aims to diversify funding sources, directing the funds toward short-term working capital needs. This move follows the successful N52.9 billion raised from the completion of Series 8 & 9 under the N20 billion commercial paper issuance program.
CEO Karl Toriola expressed gratitude for the investor confidence demonstrated in MTN Nigeria's performance and management. The recent transaction, completed in record time on November 7, underscores the changing market terrain and the company's commitment to managing funding costs effectively.
Notably, the 182-day commercial papers carried a 14.00% yield, while the 267-day commercial papers had a yield of 16.00%. This development follows MTN Nigeria's Q3 2023 financials, revealing a 75.7% YoY decline in profit before tax to N32.08 billion. Despite this, the company reported a 21.4% YoY increase in Q3 2023 revenue to N614.2 billion, contributing to a 21.76% YoY growth in nine-month revenue, reaching N1.78 trillion.
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