MTN Nigeria Communications Plc, is considering approaching the local debt market to borrow N200 billion.
The firm with the highest mobile phone subscribers in the country said the funds would be obtained through the sale of bonds.
The company has already secured the approval of the Securities and Exchange Commission (SEC) to launch a N200 billion bond issuance programme.
It stated that this route is being followed because it aligns with its strategy of diversifying its funding sources.
Recall that last month, MTN Nigeria sold commercial papers worth N100 billion to investors and the proceeds were used to finance the company’s working capital and general corporate activities.
The CP was sold in Series III and IV and followed the initial sale of N100 billion a few months earlier under Series I and II.
The company confirmed that those who bought the first two tranches of the papers have been repaid with their interests.
“The company confirms that the series I and series II CP issuances of the aggregate value of N100 billion have been redeemed,” a part of a statement issued by MTN Nigeria disclosed.
MTN Nigeria further said subscriptions for the series III and series IV of the CP have been completed, adding that it raised a total of N73.5 billion from the exercise, which opened on Thursday, March 11, 2021, and closed on Friday, March 19, 2021.
Naija247news that N19.8 billion was raised from the series III and it cleared at 6.77 per cent, while N53.7 billion was raised from the series IV, clearing at 7.56 per cent.
MTN Nigeria said its desire to explore the different sources of raising funds inspired the option of issuing the N200 billion worth of corporate bonds to investors.
It stated that it was in the process of selling the first tranche of the debt instrument, which will carry a 7-year maturity, with the rate to be determined by the “prevailing market conditions.”