MTN to register follow-on N200bn bond issuance programme

MTN Nigeria Communications Plc (MTNN) said it has applied to the Securities and Exchange Commission (SEC) in respect of registration of a new N200billion Bond issuance programme (second bond issuance programme).
This second bond issuance programme according to a notice at the Nigerian Exchange Limited (NGX) is a follow-on to the successful N200billion debut bond issuance programme in 2021 under which the company issued the N110billion 13percent 7-year series I bond due 2028 and N90billion 12.75percent 10-year series II bond due 2031.

The leading telco said the proceeds of the bond 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”, according to the notice signed by Uto Ukpanah, company secretary, MTN Nigeria Communications Plc.

Global Credit Rating (GCR) has affirmed the national scale long-term and short-term issuer rating of AAA (NG) and A1+(NG) for MTN Nigeria with a stable outlook. GCR also maintained the same rating on the outstanding MTN Nigeria bonds.

According to GCR “the rating affirmation is driven by MTN Nigeria’s strong competitive position within the Nigerian telecommunications sector, which continues to support robust earnings and cash flow, and solid leverage metrics.”

Also, Agusto & Co has upgraded MTN Nigeria’s credit rating to Aa+, saying the upgraded rating reflects MTNN solid financial situation, characterised by superior and sustainable profitability levels, strong cash flow, improving leverage metrics, a robust corporate governance framework, and an experienced and qualified management team.

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