MTN Nigeria, the nation’s largest mobile network operator, has successfully raised $97.5 million through its commercial paper issuance program to support daily operations and meet immediate financial obligations.
This marks the conclusion of the Series 11 and 12 issuances under MTN Nigeria’s $325 million Commercial Paper Issuance Programme. Initially targeting $65 million, the offering was oversubscribed by 150%, reaching $97.5 million, according to a filing with the Nigerian Exchange (NGX) on Friday.
The oversubscription reflects strong investor confidence in MTN Nigeria, despite the company facing a challenging financial year. For the nine months ending September 30, 2024, MTN Nigeria reported a loss after tax of $668.3 million, primarily due to the devaluation of the Nigerian naira. The company also reported net foreign exchange losses of $1.17 billion, significantly increasing its finance costs.
Despite these financial hurdles, MTN Nigeria achieved strong growth in service revenue, which rose by 33.6% year-on-year to $3.5 billion for the period. The increase was driven by a 52.3% surge in demand for data services and an 18% rise in fintech services.
The commercial paper issuance attracted broad participation from asset managers, banks, insurance companies, and other institutional investors.
However, pension funds were notably absent due to a temporary suspension by the National Pension Commission pending updated guidelines from the Securities and Exchange Commission.
This successful fundraising effort demonstrates investor confidence in MTN Nigeria’s resilience and growth potential, even in the face of significant economic challenges.
