MTN Nigeria Communication Plc has notified the Nigerian Exchange Limited (NGX) and the investing public of the successful completion of its series 4 & 5 Commercial Paper Issuance under N150billion CP issuance Programme.
The telecommunication giant in a statement signed by its company secretary, Mr. Uto Ukpanah stated that it sought to raise N100billion and the transaction was 125 per cent subscribed with a total of N125billion to enable the company to disburse the fund on short-term working capital and funding requirements.
Commercial paper is an interest-bearing promissory note exchanged for capital. It is a credit instrument or a channel to obtain loans from the securities market without approaching the bank.
The commercial paper is issued by a corporate organisation in need of funds for short-term financial obligations, which include; working capital, and refinancing debt, amongst others.
According to his statement, “MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, with a total of A125 billion raised.
“MTN Nigeria issued 188-day commercial papers at a yield of 11.00% and 267-day commercial papers at a yield of 12.50%. The CP Issuance was completed on 1 March 2023.
“The CP Issuance is part of MTN Nigeria‘s strategy to diversity its funding options. The proceeds will be utilised for its short-term working capital and funding requirements,” the document reads.