MTN Nigeria to raise N50bn CP to finance working capital

MTN Nigeria on Friday said it plans to raise up to N50 billion in Commercial Paper (CP) under series one and two programmes, the local unit of South Africa’s telecoms firm said in a filing with the Nigerian Stock Exchange (NSE).

In the regulatory filing, the telecoms company said the commercial paper issuance the programme has been approved by the FMDQ Securities Exchange.

It said the FMDQ approved N100 billion commercial paper programme, under which it is issuing N50 billion was part of the company’s strategy by the company to diversify its financing options.

The company, which did not specify when the debt issue will take place said the proceeds from the issuance will be deployed towards working capital and general corporate purposes.

It, however promised to provide details on the initial issuance and subsequent issuances to the market as the transaction occurred.

Many companies in the country are resorting to raising needed funds to finance their operations in the face increase liquidity in the system and fall in major fixed income.

Dangote Cement in April raised about N100 billion in commercial paper with 5-year tenor and at a coupon rate of 12.5 per cent per annum.