MTN Nigeria, the largest mobile network operator in the country, has successfully raised ₦75 billion in its recent commercial paper issuance. Initially targeting ₦50 billion, the Series 11 and 12 issuances under the company’s ₦250 billion Commercial Paper Issuance Programme were oversubscribed by 150%, reflecting strong investor confidence.
This funding, announced through a filing with the Nigerian Exchange (NGX) on Friday, is set to support MTN Nigeria’s daily operations and meet immediate financial obligations.
A Boost Amid Financial Headwinds
Despite facing a tough financial year, MTN Nigeria continues to attract significant investor interest. For the nine months ending September 30, 2024, the company reported a loss after tax of ₦514.9 billion. The loss was primarily attributed to the devaluation of the Naira, which resulted in net foreign exchange losses of ₦904.9 billion and a surge in finance costs.
However, service revenue growth provided a silver lining. MTN Nigeria saw a 33.6% year-on-year increase in service revenue, reaching ₦2.35 trillion. This growth was driven by a 52.3% rise in demand for data services and an 18% increase in fintech services.
Who Invested?
The commercial paper issuance drew participation from a diverse range of institutional investors, including asset managers, banks, and insurance companies. However, pension funds were notably absent due to a temporary suspension by the National Pension Commission (PenCom). This suspension remains in place as the Securities and Exchange Commission works on updated guidelines.
