MTN Nigeria Communications has announced its intention to raise up to N50 billion through commercial paper issuance.
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.
In a statement on Monday, Uto Ukpanah, the company’s secretary, said the paper notes comprise of series 11 and 12 under the company’s N250 billion commercial paper issuance programme.
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Ukpanah said the issuance is part of MTN’s strategy to diversify its financing sources, with the funds intended to support short-term working capital requirements.
“MTN Nigeria Communications PLC (MTN Nigeria or the company) hereby notifies the Nigerian Exchange Limited and the investing public of the proposed issuance of up to N50 billion series 11 and 12 commercial paper notes under the company’s N250 billion commercial paper issuance programme (the issuance),” the statement 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 requirements.”
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The firm’s secretary said details of the issuance will be communicated to the market.
On August 31, 2023, MTN announced that it had successfully raised N125 billion through the issuance of commercial paper notes.
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