FMDQ lists MTN Nigeria’s N110bn bond

FMDQ Securities Exchange Limited has agreed to list MTN Nigeria’s N110 billion series 1 senior unsecured fixed rate bond. 

Karl Toriola, chief executive officer, MTN Nigeria, said this in a statement released by FMDQ Exchange on Tuesday to NAN in Lagos.

According to FMDQ, the listing followed the careful examination of its Board Listings and Markets Committee and under MTN Nigeria’s N200 billion bond issuance programme on the exchange’s platform.

“We are very proud of this landmark transaction, which is the first ever telecommunication bond issued in Nigeria and the largest corporate bond issuance in 2021,” Toriola said.

“The Nigerian debt capital market has given us the opportunity to diversify our funding sources further and enabled us to extend the maturities of our debt portfolio to match infrastructure investments.

“Investors’ strong support for this transaction, given the challenging economic environment, is a reflection of their confidence in MTN Nigeria’s long-term strategy, the management team, the depth of the market, and the overall growth in the telecommunications industry, and we do appreciate the support.”

Bolaji Balogun, chief executive officer of Chapel Hill Denham Advisory Limited, sponsor of the bond and a registration member (listings) of the Exchange, said that the bond issuance marked a notable milestone for MTN.

“The firm is honoured to have led the successful Series 1 bond issuance of N110 billion working with the six joint issuing house,” Balogun said.

“The Series 1 bond was oversubscribed and strongly supported by robust demand from over two hundred (200) investors, which included Pension Funds & Asset Managers, Banks, Family Offices and High Net worth Individuals.

“This issuance is the largest corporate debt transaction this year and its success demonstrates MTN Nigeria’s strong credit profile, leading position in the market as well as its long-term prospects.”