MTN Nigeria Announces Series 15, 16 Commercial Papers

MTN Nigeria has announced its intention to issue Series 15 and 16 Commercial Papers, targeting ₦50 billion under its ongoing ₦250 billion Commercial Paper Issuance Programme.

This decision follows the overwhelming success of its Series 13 and 14 issuances, which raised ₦72.18 billion on November 29, 2024—a significant oversubscription of 144 percent against the initial target of ₦50 billion.

In a formal disclosure to the Nigerian Exchange Limited (NGX) and the investing public, the telecom giant outlined its plans to continue leveraging commercial papers as a flexible financing tool. The proceeds from the new issuances are intended to support MTN Nigeria’s short-term working capital requirements and bolster liquidity amid prevailing economic uncertainties.

The move comes as part of MTN Nigeria’s broader ₦250 billion Commercial Paper Programme, designed to raise capital in phases to address operational needs and strategic initiatives. With Stanbic IBTC serving as the lead arranger and dealer, other key financial institutions—including CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank—played instrumental roles in structuring and marketing the previous issuances.

On November 29, 2024, MTN Nigeria successfully issued its Series 13 and 14 Commercial Papers, offering attractive yields of 27.50 percent for the 181-day paper and 29.00 percent for the 265-day paper, drawing significant interest from both institutional and retail investors. This followed the earlier Series 11 and 12 issuances on November 7, 2024, which raised ₦75.1 billion.

The commercial paper programme underscores MTN Nigeria’s ability to tap into Nigeria’s capital market efficiently, showcasing strong investor confidence in the company despite prevailing economic headwinds.

MTN Nigeria recently reported a post-tax loss of ₦514.9 billion for the first nine months of 2024, primarily driven by the sharp depreciation of the naira and its impact on the company’s foreign currency-denominated obligations. The loss further led to negative retained earnings of ₦723.0 billion and shareholders’ equity of ₦573.6 billion as of September 2024.

In light of these challenges, Chief Executive Officer of MTN Nigeria, Mr.  Karl Toriola acknowledged the strain caused by macroeconomic volatility but emphasized the company’s resilience, highlighting positive free cash flow driven by efficient working capital management and reduced capital expenditures.

Mr. Toriola reassured stakeholders, stating: “As we navigate the ongoing macroeconomic headwinds, we remain committed to initiatives that will accelerate our earnings recovery, strengthen our balance sheet, and expedite the restoration of our net asset position.”

The introduction of Series 15 and 16 commercial papers is a strategic effort to diversify MTN Nigeria’s financing sources, ensuring the company maintains operational efficiency and stability amid economic challenges. The proceeds from the issuances will be channelled towards short-term working capital needs, enabling the telecom giant to manage liquidity effectively while pursuing growth opportunities.

MTN Nigeria’s ability to secure oversubscriptions in recent commercial paper issuances reflects strong investor confidence and the company’s solid market reputation. The upcoming Series 15 and 16 issuances will further reinforce MTN Nigeria’s financial stability, support its operational goals, and enhance its resilience against macroeconomic headwinds.