MTN Nigeria Communications PLC has announced plans to raise up to N50 billion through the issuance of commercial papers, part of its N250 billion commercial paper issuance program.
The funds are intended to support the telecom giant’s short-term working capital needs, aligning with MTN’s strategy to diversify its financing sources.
Commercial papers are short-term, unsecured debt securities issued by financially sound corporations, allowing them to borrow directly from the public as an alternative to bank credit. These promissory notes enable companies to meet immediate funding needs with a promise of repayment at maturity.
In a statement released on Monday, Uto Ukpanah, MTN Nigeria’s company secretary, confirmed that the issuance will comprise Series 11 and 12 of the company’s commercial paper notes under its existing program.
Ukpanah noted that the initiative aligns with MTN’s strategic approach to broadening its financing options.
The statement reads, “MTN Nigeria Communications PLC (MTN Nigeria or the company) hereby notifies the Nigerian Exchange Limited and the investing public of the proposed issuance of up to N50 billion series 11 and 12 commercial paper notes under the company’s N250 billion commercial paper issuance programme.
“The issuance is part of the company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital requirements.”
According to Ukpanah, further details of the issuance are expected to be communicated to the market in due course, providing investors with information on terms and maturity.
