MTN's Nigeria unit announces issuance of $54.2 million commercial paper – Business Insider Africa
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MTN Nigeria Communications PLC has announced a proposed issuance of N23 billion ($54.2 million) in the Nigerian capital market.
A corporate disclosure by the telecom company, seen by Business Insider Africa, said the Series 3 commercial notes are part of MTN Nigeria N150 billion ($353.7 million) commercial issuance programme.
The disclosure by MTN Nigeria did not say when exactly the notes would be issued or their tenor. But it did mention that funds realised from the proposed issuance would go towards bolstering working capital.
“The issuance is part of the company’s strategy to diversify its financing options, with the funds deployed towards working capital and general corporate purposes,” part of the statement said.
More details about the issuance, including the transaction date and plans for future issuances, would be communicated in due course.
This is the second commercial paper issuance by MTN Nigeria this year. Recall that the company had earlier issued an N127 billion ($306.3 million) series 1 & 2 commercial paper on the Nigerian Exchange, also a part of the $353.7 million programme.
Note that commercial paper is an unsecured, short-term debt instrument commonly used by companies to raise capital from the public and take care of their short-term financial liabilities. The maximum maturity date for a commercial paper is typically 270 days, according to Investopedia.
The latest commercial issuance by MTN Nigeria is coming barely days since its parent company announced that it was cutting its dollar-denominated debt by 35% through an early settlement of part of its $750 million Eurobonds due to mature in November 2024.
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