BY Busola Aro
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.
“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.
“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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