MTN Nigeria, the country’s largest mobile operator, has raised ₦75 billion through its commercial paper issuance programme. The funds will support day-to-day operations and meet immediate financial obligations.
This completes the issuance of series 11 and 12 under MTN Nigeria’s ₦250 billion commercial paper issuance programme. The offering, which was initially targeted at ₦50 billion, was oversubscribed, reaching ₦75.18 billion, up 150%, according to a filing on the Nigerian Exchange (NGX) on Friday.
The oversubscription reflects investors’ strong confidence in the company despite a challenging financial year. MTN reported a loss after tax of ₦514.9 billion for the nine months ended September 30, 2024, mainly due to the devaluation of the Nigerian Naira. The company suffered a net foreign exchange loss of ₦904.9 billion and its financing costs increased significantly.
Despite these setbacks, MTN Nigeria recorded strong growth in services revenue, up 33.6% year-on-year to ₦2.35 trillion. This growth was driven by a 52.3% increase in demand for data services and an 18% increase in fintech services.
The commercial paper issuance attracted participation from asset managers, banks, insurance companies and other institutional investors. However, pension funds are excluded due to a moratorium by the National Pension Board, pending updated guidance from the Securities and Exchange Commission.
