MTN Nigeria Floats N89.999bn Bond On FMDQ

MTN Nigeria Communications Plc has finalised the launch of a Fixed Rated, Series two Senior Unsecured bonds of N89.999 billion under its N200 billion bond Programme on the FMDQ Securities Exchange Limited.

The bond came on the heels of the Nigerian government’s approval of the 5G technology and also its deployment in the country.

Details of the issue show the proceeds would be used to deepen operational capital and network expansion.

Chapel Hill Denham Advisory Limited which is the lead issuer, stated that the bonds programme which tenor is fixed for 10 years, opens September 2021 and closes September 2031.

Other details of the terms of the proposed offer showed that the Principal Redemption is fixed for seven Year Moratorium while amortizing thereafter will be in 3 equal annual instalments until the bond programme is on a minimum subscription of N10 million and in multiples of N1 million thereafter. It also listed the Joint Issuing Houses to include Stanbic IBTC Capital Limited, DLM Advisory Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Rand Merchant Bank Nigeria Limited and Vetiva Capital Management Limited

The statement read, “Chapel Hill Denham Advisory Limited is pleased to inform you of the upcoming launch of MTN Nigeria Communications Plc’s (“MTN Nigeria’s”, ‘’the Company’s” or the “Issuer’s”) Series 2 Bonds of up to N89.999 billion (‘’the Issuance” or ‘’the Offer”) under its N200 Billion Bond Issuance Programme.

MTN Nigeria is the leading telecommunications operator in the largest telecommunications market in Africa and the largest mobile operator and the undisputed market leader in Nigeria in terms of total mobile subscribers (68.9 million), and active data users ( 32.5 million).

MTN Nigeria is well-positioned for the long term with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network (c. 30,000km) spanning across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – coupled with the exciting Nigerian market opportunity.

Most recently, MTN Nigeria’s credit rating was upgraded to the highest possible long and short-term corporate rating of “AAA” by GCR. MTN Nigeria is the first mobile network operator in Africa and is one of two corporates in Nigeria to be accorded such ratings.

The rating reflects the Company’s very strong competitive position, as well as its strong earnings and cash flow, which have supported a robust financial profile

“The ratings further reflect MTN Nigeria’s experienced and dedicated management team, and the beneficial relationship with MTN Group – Africa’s leading cellular telecommunications company servicing over 251 million subscribers, with a strong presence in 21 countries (including the Middle East).”