MTN Nigeria Communications Plc has announced the successful completion of the issuance of its N89.99 billion Series II 10-Year bond.
The Series II Bond, which maturity falls due in 2031, is issued at 12.75 per cent fixed rate and it is part of the N200 billion Bond Issuance Programme of the telecom company.
The issuance began about six months ago. It is the company’s second this year, following the successful outing in May this year.
The company made the announcement through a notice sent to the Nigerian Exchange (NGX) Limited in Lagos yesterday.
This completes MTN Nigeria’s ¦ 200 billion bond issuance programme, which the company said was fully subscribed.
The telecom giant also spoke of a plan to offer 575 million shares to the public this month.
Company Secretary, Ufo Ukpanan said in a statement that MTN Group Limited intends to proceed with a public offer for sale of up to 575 million shares in MTN Nigeria by way of a book-build to institutional investors and fixed price to retail investors.
Ukpanan said: “The offer is anticipated to open in November 2021 with a book-build to institutional investors, after which a fixed price is expected to be announced for retail investors also in November 2021.”
He said the offer will close in December.
This is the first step in MTN Group’s previously communicated statement of intent to sell down approximately 14 per cent of its current shareholding in MTN Nigeria.
The book-build process which started on October 8 was completed on October 15.
The offer, according to the company, “was well received with active participation from a diverse range of high value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals.”
During the book-build, the total value of subscriptions received peaked at N133.454 billion, representing a 1.48 times oversubscription.
As a result, the Series II Bond was launched at a clearing coupon of 12.75 per cent with N89.999 billion in qualified bids.
The successful Series II Bond issuance reflects the company’s strong credit ratings, which was recently upgraded to AAA, investor confidence in its ability to maintain market leadership in the telecoms industry, and the depth of the domestic capital market.
The company said the net proceeds from the programme will be used to optimise MTN Nigeria’s capital structure and finance network expansion.
Reacting to the bond issuance, the Chief Executive Officer of MTN Nigeria, Kari Toriola said: “We continue to be grateful for the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network.
“In line with the company’s strategy, the bonds issued this year will enable us to diversify funding sources and extend the maturity profile of the company’s debt portfolio.
“We are very proud of this landmark transaction and thank the investor community for their continued confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry.”
Chapel Hill Denham Advisory Limited acted as the Lead Issuing House for the Series II Bond, while Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted as Joint Issuing Houses.
Credit: thenationonlineng.net
