MTN Nigeria to issue N100bn bond for network expansion

MTN Nigeria Communications says it plans to issue up to N100 billion Series 1 bond under its new bond issuance programme.

Bonds are investment securities where an investor lends money to a company or a government for a period in exchange for regular interest payments. At the maturity date, the principal amount is paid back in full or risk default.

Uto Ukpanah, company secretary, MTN Nigeria, disclosed this in a corporate filing on Thursday. 

The telco giant said the proposed issuance followed relevant regulatory approval. 

“MTN Nigeria Communications Plc (MTN Nigeria) has completed registration with the Securities and Exchange Commission (SEC) of its new N200 billion bond issuance programme announced in July 2022,” the statement reads. 

“Consequently, MTN Nigeria has received SEC’s approval to launch the Series I (Tranche A) 4-Year Fixed Rate Bond and Series I (Tranche B) 10-Year Fixed Rate Bond (the “Issuance”) under the programme. The issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources in line with its corporate objectives.

“MTN Nigeria will launch the book build in respect of the Series I (Tranche A and B) Bond on 15 September 2022.” 

In 2021, the company raised a N200 billion fixed rate bond — the first telecommunications company bond issued in Nigeria. 

In July, the telecoms firm raised another N200 billion bond to expand network coverage.