MTN Nigeria offers N52bn commercial paper for short-term funding

MTN Nigeria Communications Plc says it is offering up to N52.8 billion series 8 and 9 commercial paper notes.

The telco announced this on Thursday in a corporate filing on the Nigerian Exchange Limited (NGX) signed by Uto Ukpanah, the company secretary.

Ukpanah said that the proposed series eight and nine commercial paper is part of its N250 billion issuance programme.

He added that the proceeds will be deployed towards short-term working capital and funding requirements.

Commercial papers are short-term debt securities typically issued by creditworthy corporations looking to raise funds from the public to meet working capital requirements as a viable alternative to bank credit.

This means that companies borrow money from the public by issuing short-term promissory notes, usually unsecured, with the promise of repayment at the date of maturity.

“MTN Nigeria Communications Plc, hereby, notifies the Nigerian Exchange Limited and the investing public of its proposed issuance of up to N52,895,846,000 Series 8 & 9 commercial paper notes under its N250 billion commercial paper issuance programme,” the notice reads.

“The issuance is part of the company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital and funding requirements.

“Further details on the issuance will be communicated to the market.”

In August 2023, the telco raised N125 billion through the issuance of commercial paper notes.