A significant milestone was reached as MTN Nigeria, the leading mobile network operator in the country, successfully raised ₦75 billion through its commercial paper issuance program. The raised funds are intended to bolster daily operations and meet immediate financial obligations.
This successful endeavor marks the conclusion of the Series 11 and 12 issuances within MTN Nigeria’s ₦250 billion Commercial Paper Issuance Programme. Originally aimed at ₦50 billion, the offering received overwhelming investor interest, resulting in an oversubscription of 150%, with ₦75.18 billion issued, as confirmed by a filing with the Nigerian Exchange (NGX).
The oversubscription is indicative of strong investor confidence in the company, despite facing financial challenges in the previous year. MTN Nigeria reported a loss after tax of ₦514.9 billion for the nine months ending on September 30, 2024, primarily due to the devaluation of the Nigerian Naira. The company grappled with net foreign exchange losses of ₦904.9 billion, significantly impacting finance costs.
Despite these obstacles, MTN Nigeria achieved notable growth in service revenue, with a 33.6% year-on-year increase to ₦2.35 trillion during the period. The growth was primarily driven by a 52.3% surge in demand for data services and an 18% rise in fintech offerings.
The commercial paper issuance attracted diverse participation from asset managers, banks, insurance companies, and other institutional investors. Notably, pension funds were excluded due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission.