MTN Nigeria Communications Plc has notified the public of it’s proposed Commercial Paper Issuance (series 1 & 2 commercial paper issuance N50billion each) under its N100 billion Commercial Paper (“CP”) Issuance Programme.
The proceeds from the CP issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.
Highlights of the report are as follows:
Arranger: Chapel Hill Denham Advisory Limited
Minimum subscription: N5 million
Issuance size: N100 billion (series 1 & 2 commercial paper issuance N50billion each)
Tax consideration: Free and clear of withholding Taxes
MTNN is the leading telecommunications operator in the largest telecoms market in Africa. The company is the largest mobile operator and undisputed market leader in Nigeria, as measured by total mobile subscribers (c. 70 million), active data users (c. 26.8 million), revenue (almost 50% of industry), and profit pool.
MTNN is well-positioned for the long term, with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fiber network (c. 29,000km) that spans across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – and the exciting market opportunity Nigeria brings.
Nigeria offers an attractive telco market proposition as Africa’s largest economy and most populous country. Mobile voice and data subscription will continue to be a major part of consumer spending, largely driven by increased adoption by the young population.
It is important to note that in the recent COVID-19 environment, MTNN has continued to sustainably add new subscribers, and customer voice and data usage remains resilient.
MTNN is rated Aa+ by Agusto & Co. which reflects the company’s history of strong financial performance – record revenue in excess of N1 trillion (largest revs by a listed corporate), stable and healthy operating profit metrics (+53% EBITDA margin), comfortably low leverage (0.4x Net Debt/EBITDA, 10.8x interest coverage) that is predominantly local currency, and strong free cash flow.