MTN Nigeria Communications PLC (MTN Nigeria) has announced plans to raise N50 billion through its latest issuance of commercial paper (CP) under its N250 billion Commercial Paper Issuance Programme.
This Series 11 and 12 CP issuance aims to strengthen MTN Nigeria’s short-term working capital and diversify its financing base, according to a notification to the Nigerian Exchange Limited and the investing public.
This proposed issuance is part of MTN Nigeria’s ongoing strategy to tap the debt market as a flexible funding source to meet immediate financial needs.
It builds upon the company’s series of CP issuances in the past year as it pursues a robust approach to balance its capital structure.
The funds are expected to support the company’s operational and growth requirements as it seeks to expand its infrastructure, improve service delivery, and cater to the increasing demand for telecommunications and digital services across Nigeria.
MTN’s financial statement as of September 2024 suggests it has negative working capital of about N1.49 trillion
MTN Nigeria’s N250 billion CP programme allows it to issue multiple CP series as needed, enabling it to meet cash flow demands and service short-term debt without over-relying on long-term financing.
While the company has yet to disclose specific terms of the Series 11 and 12 notes, further details are expected to be shared in the coming weeks.
MTN Nigeria currently carries a total external loan portfolio of about N1 trillion, out of which N522.3 billion are short-term loans.