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MTN Nigeria to raise another N200bn bond for network expansion

MTN Nigeria to raise another N200bn bond for network expansion
July 19
21:01 2022

MTN Nigeria Communications says it will raise another N200 billion bond to expand network coverage.

Bonds are investment securities where an investor lends money to a company or a government for a set period of time in exchange for regular interest payments. At the maturity date, the principal amount is paid back in full or risk default.

Last year, the company raised a N200 billion fixed rate bond.

In a statement on Tuesday, the telco giant disclosed it has applied through the securities and exchange commission (SEC) for the second issuance programme.

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“MTN Nigeria Communications Plc (MTN Nigeria or the Company) has applied to the Securities & Exchange Commission in respect of the registration of a new 200 billion bond issuance programme (second bond issuance programme),” the statement reads.

“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 percent 7-year series I bonds due 2028 and 90 billion 12.75 percent 10-year series Il bonds due 2031.

“The proceeds of the bond issuance will be used for capital expenditure (network expansion), working capital management and general corporate purpose.

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“The company will decide on issuances under the Second Bond Issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals.”

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