MTN Nigeria Secures ₦75bn In Oversubscribed CPI

MTN Nigeria, the country’s leading mobile network operator, has successfully raised ₦75 billion through its commercial paper issuance (CPI) program, highlighting investor confidence despite a turbulent financial year.

The funds, raised under Series 11 and 12 of the company’s ₦250 billion commercial paper issuance programme, will bolster daily operations and address immediate financial obligations.

Initially targeting ₦50 billion, the offering witnessed an overwhelming 150 percent subscription rate, with ₦75.18 billion ultimately issued. The oversubscription, disclosed in a filing with the Nigerian Exchange (NGX) recently, highlights strong institutional backing for MTN Nigeria’s resilience and market leadership.

The issuance comes at a time when MTN Nigeria is dealing with significant financial headwinds. For the nine months ending September 30, 2024, the company reported a loss after tax of ₦514.9 billion, largely driven by the devaluation of the naira. This devaluation resulted in net foreign exchange losses of ₦904.9 billion, which sharply increased finance costs.

Despite these challenges, MTN Nigeria demonstrated robust operational performance. Service revenue rose by an impressive 33.6 percent year-on-year to ₦2.35 trillion, fueled by a 52.3 percent surge in demand for data services and an 18 percent growth in fintech services.

The commercial paper issuance attracted widespread participation from asset managers, banks, insurance firms, and other institutional investors. However, pension funds were notably absent due to a temporary suspension by the National Pension Commission, pending revised guidelines from the Securities and Exchange Commission (SEC).

The strong investor response stresses MTN Nigeria’s resilience and strategic market positioning, even as it navigates macroeconomic volatility. The proceeds from this issuance will ensure continuity in operations and maintain the company’s ability to meet its financial obligations, reaffirming its commitment to stakeholders and the broader Nigerian market.