MTN Nigeria has successfully completed the issuance of its N89.999 billion Series II 10-year bond with a fixed rate of 12.75% due by 2031. This is according to disclosure sent by the company to the Nigerian Exchange Group (NGX) and signed by the company secretary.

The series II Bond is the second issuance this year by the telco giant following the debut in May 2021. This completes MTN’s N200 billion bond issuance programme.

According to the disclosure, the issuance was oversubscribed 1.48 times as the total value of subscriptions received peaked at N133.45 billion. “The disclosure partly reads; The bookbuild process commenced on 8th October 2021 and was completed on 15th October 2021. The offer was well received with active participation from diverse range of high value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals.”

What they are saying

Commenting on the issuance, the CEO of MTN Nigeria, Karl Toriola expressed gratitude for the support received for the opportunity to access the local debt market.

“We continue to be grateful for the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network. In line with the Company’s strategy, the bonds issued this year enable us to diversify funding sources and extend the maturity profile of the company’s debt portfolio,” he said

“We are very proud of the landmark transaction and thank the investor community for their continued confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry,” he added.

Kemi Awodein, Managing Director, Chapel Hill Denham stated that, “We are delighted to have led and completed MTN Nigeria’s N200 Billion Bond Issuance Programme with the pricing of the N89.999 billion Series 2 bonds.

“MTN Nigeria’s strong credit story has underpinned what have been two oversubscribed issuances in tricky market conditions this year. Chapel Hill Denham acted as Lead Manager and Bookrunner on the MTN debut and follow on issuances of the first bonds issued by a Nigerian telecommunications operator further broadening Nigeria’s capital markets.

“We are humbled to have led this landmark transaction and pleased to have delivered results for MTN Nigeria and the opportunity to be a part of MTN’s continued success story.”

The net proceeds of the issuance will be used to optimise the company’s capital structure and finance network expansion.

What you should know

Chapel Hill Denham acted as the Lead Issuing House for the Series II Bond, and Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted as Joint Issuing Houses.

In case you missed it

Nairametrics had reported last month that MTN Nigeria was preparing to launch its Series 2 bonds worth N89.999 billion. The information, which was according to an email sent by Chapel Hill Denham Advisory Limited to investors.