Telecom giant, MTN Nigeria is offering N90 billion worth of bonds with 10 years maturity for sale to investors after obtaining regulatory approval for the exercise.
The company confirmed in a notice that the book build for the N90 billion series II bond took place on Friday, October 8, 2021.
Recall that MTN had informed the investing public last week that it was awaiting approvals from the regulators on the N90 billion bond sale.
The statement stated that the issuance of the note was one of its strategies “of diversifying its funding sources” through the capital market, which offered a cheaper avenue for borrowing when compared with what is obtained at the financial institutions.
MTN Nigeria had initially said it planned to take about N200 billion from the market through the sale of the papers in series. The exercise happening today is the second tranche.
“MTN Nigerian Communications Plc has obtained the approval of the Securities and Exchange Commission (SEC) to launch the Series II 10-Year Fixed Rate Bond announced on September 21, 2021.
“The Series II Bond represents the completion of the N200 billion registered shelf programme.
In addition, the bond issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources.
“MTN Nigeria will launch the book build in respect of the Series II Bond on October 8, 2021,” the statement signed by the company secretary, Uto Ukpanah, stated.