Mtn Nigeria Aims For 30.4-million Commercial Paper Issuance To Boost Liquidity Amid Naira Devaluation And Rising Costs

MTN Nigeria Communications Plc has announced its plan to issue up to N50 billion 30.4 million in Series-11 and -12 commercial paper notes under its N250-billion 151.9 million commercial paper issuance programme. This was disclosed in a corporate notice filed with the Nigerian Exchange Limited on Monday, signed by the Company Secretary, Uto Ukpanah.

Funding for short-term capital requirements

This issuance follows the success of MTN's previous Series 10 commercial paper, which raised N72.1 billion 43.8 million in late 2023 with a 149-percent subscription rate. The Series 10 notes had a 266-day term and a yield of 16 percent.

According to MTNs notice, the new issuance is part of the companys broader strategy to diversify its financing options, with the proceeds allocated for short-term working capital needs. This move aligns with MTNs efforts to ensure liquidity amid Nigerias tough economic conditions, including rising energy costs, naira devaluation, and inflation, which have impacted business operations.

Despite seeing a 33.6-percent increase in service revenue to N2.4 trillion 1.46 billion in the first nine months of 2024, MTN reported a N1.9-billion 1.2 million loss, primarily due to naira depreciation and escalating operational expenses. The companys earnings before interest, tax, depreciation, and amortisation EBITDA dropped by 5.3 percent to N860.2 billion 522.8 million, while its loss after tax was N514.9 billion 313 million.