MTN Nigeria Communications Plc (MTN Nigeria) has successfully completed the issuance of N110,001,000,000 Series 1 7-Year 13.0 percent fixed rate bonds due 2028 (Series I Bond) under the N200,000,000,000 Bond Issuance Programme. The company had initially indicated the intention to raise N100 billion in Series 1 of the registered shelf programme.
The Series I Bond is the largest corporate bond issuance in the debt capital markets thus far in 2021 and MTN Nigeria’s debut in the domestic bond market, the company having established a strong presence in commercial paper issuances.
The Book Build process in respect of the transaction launched on April 9, 2021 and was completed on April 16, 2021. The transaction was well received with active participation from a wide range of high value and quality investors including pension funds, fund managers, banks, insurance companies, trustees, corporates, and high net worth individuals. The total value of orders received during the Book Build was N132,151,000,000, representing a 1.32 times oversubscription of the intended N100,000,000,000 issuance. The issue was launched at a clearing coupon of 13.0 percent with N110,001,000,000 in qualified bids.
The Series I Bond Issuance further reinforces MTN Nigeria’s strategy of diversifying its funding sources and reflects its market leadership and strong credit quality, as well as the resilience of the domestic debt capital market. The net proceeds will partly be used to refinance existing debt and support the roll out of critical network infrastructure.
Commenting on the bond issuance, Karl Toriola, chief executive officer, MTN Nigeria, said:
“We are very proud of this landmark transaction, which is the first ever telco bond issued in Nigeria and the largest corporate bond issuance this year. The domestic debt capital market has given us the opportunity to further diversify our funding sources and extend the maturity of our debt portfolio and profile to match investment in infrastructure. The strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, and investor 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 while Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted as joint issuing houses.
