MTN Nigeria has informed the Nigerian Exchange and the public about its plan to issue Series 15 and 16 Commercial Papers to raise ₦50 billion.
This follows the successful issuance of Series 13 and 14 Commercial Papers on November 29, which raised ₦72.18 billion, surpassing the ₦50 billion target by 144%.
Earlier on November 7, it raised ₦75.1 billion from Series 11 and 12.
The company is offering a series of Commercial Papers aiming to raise a total of ₦250 billion to meet its operational and strategic goals, including diversifying its financing options and improving short-term working capital needs.
In November, it offered yields of 27.50% for the 181-day paper and 29.00% for the 265-day paper.
However, despite its profitability, the company reported a post-tax loss of ₦514.9 billion in the first nine months of 2024 due to Naira depreciation against its vast foreign exchange debt exposure. This led to negative retained earnings and shareholder equity totalling ₦723.0 billion and ₦573.6 billion, respectively.
Chief Executive Officer Mr. Karl Olutokun Toriola acknowledged the foreign exchange challenges but added that MTN continues to generate positive cash flow. “As we navigate the ongoing macroeconomic headwinds, we remain committed to initiatives that will accelerate our earnings recovery,” he said.
Nonetheless, the successful subscription of its previous Series 11-14 commercial papers underscores investors’ confidence in the company’s fundamentals as a well-run, forward-looking tech and communication company.
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