Telecommunications company MTN Nigeria has issued a bond of NGN 110 billion as it seeks to manage its debt and finances …
Telecommunications company MTN Nigeria issued a bond of NGN 110 billion to manage its debt and finance its infrastructure investments.
The Nigerian branch of the South African telecommunications company MTN issued a fixed rate bond worth NGN 110 billion (US $ 266 million).
Based in Lagos, Communications MTN Nigeria made the issuance as part of its larger NGN 200 billion (USD 484 million) bond issuance program. This is the first such issue by a telecommunications company in Nigeria and the largest corporate bond issue in the debt capital market in 2021 to date.
In a statement, Karl Toriola, Managing Director of MTN Nigeria, said: “The domestic debt capital market has given us the opportunity to further diversify our sources of funding and to extend the maturity of our portfolio and our debt profile to match infrastructure investments. ”
The company said the funds would be used to refinance debt and “support the deployment of critical network infrastructure.”
Construction on the book began on April 9 and has been 1.32 times oversubscribed. The main issuing house was the Nigerian investment bank View from Chapel Hill Denham, joined by other Nigerian issuing houses Stanbic IBTC Capital, DLM Notice, FCMB Capital Markets, FBNQuest Merchant Bank and Vetiva capital management, and South Africa Rand Merchant Bank.
MTN was advised on the show by the partners Kofo Dosekun and Ayodeji Oyetunde from the Nigerian law firm Aluko and Oyebode, supported by partners Chiderah Azodoh and Damilola adesanya.
“The strong support given to this transaction, given the challenging environment, reflects the depth of the market and investor confidence in the long-term strategy of MTN Nigeria, our management team and the telecommunications industry as a whole. Toriola added.
Smile telecoms, which operates mobile broadband in Nigeria, Uganda and Tanzania, underwent restructuring in May, supported by the African Import-Export Bank, among other lenders.
Aluko & Oyebode too advised on a 750 million USD of Eurobond issued by African financial corporation (AFC) last month.