MTNN To Raise N200bn Through Bond Issuance

MTN Nigeria Communications (MTNN) Plc will be raising N200 billion through the bond issuance.

The company, in a release signed by its company secretary, Uto Ukpanah, said it has applied to the Securities and Exchange Commission (SEC) in respect of the registration of a new N200 billion Bond Issuance Programme.

The company said the proceeds of the new bond issuance will be used for capital expenditure, working capital management and general corporate purpose.

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The company stated, “MTN Nigeria Communications Plc has applied to the Securities and Exchange Commission in respect of the registration of a new N200 billion Bond Issuance Programme.
“This second Bond Issuance Programme is a follow-on to the successful N200 billion debut Bond Issuance Programme in 2021 under which the company issued the N110 billion 13.00 per cent seven-year series I bond due by 2028 and N90 billion 12.75 per cent 10-year series II bonds due 2031. The proceeds of the bond issuance will be used for capital expenditure (network expansion), working capital management and general corporate purpose.
“The company will decide on issuance under the second Bond issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals.”
MTNN, in its first quarter financial results for the period ended March 31, 2022, recorded N96.8 billion profit after tax, which is a 31.3 per cent increase in profit. Also, the telecoms company recorded an additional 1.7 subscribers to its network, within the same period.
Speaking on the Q1 performance, CEO of MTN Nigeria, Mr. Karl Toriola, said: “we have continued to make good progress in the first quarter, building on the momentum we achieved in Q4, 2021 and delivering several key milestones as we grow our connectivity business and platforms.
“This was achieved against a backdrop of significant geopolitical volatility exacerbated by the war in Ukraine. This conflict has significantly impacted energy prices, broader inflation, supply chains and consumer spending.”
He added that the company will continue executing its strategy to deliver service revenue growth in line with medium-term guidance, saying it continue to focus on driving operating leverage and extracting efficiencies to support earnings, cash flow growth and returns over the medium term.