MTN Nigeria on Friday, November 15, announced the raising of N75.18 billion ($45 million) under its commercial paper issuance programme, surpassing its initial target of N50 billion. The funds will be used to meet the company’s short-term working capital requirements.

In a press release signed by its Secretary General, Uto Ukpanah, MTN Nigeria also welcomed this oversubscription which is “part of the company’s 250 billion euro commercial paper issuance programme”.

The offering was oversubscribed by 150%, reflecting investor confidence in MTN Nigeria despite a challenging financial environment. The offering attracted a wide range of investors, including asset managers, banks and insurance companies. However, pension funds were notably absent due to a temporary suspension by the National Pensions Commission, pending updated guidelines from the Securities and Exchange Commission.

The oversubscription to MTN Nigeria’s commercial paper underscores investors’ confidence in the long-term potential of the telecoms company, which is currently focusing on developing its digital and financial services offerings. A transaction that is attracting great interest from investors due to the new revenue opportunities it presents for MTN Nigeria, whose growth remains stable.

During MTN Nigeria’s investor call on October 31, the company reported a strong 33.6% increase in its service revenue. This growth was driven by a 9.8% increase in voice traffic, a significant 42.1% increase in data traffic and a 5.1% increase in active users.

The company also highlighted the strong momentum in its fintech ecosystem, reflecting the growing demand for digital financial services. In terms of profitability, MTN Nigeria recorded a 5.6% increase in EBITDA in the third quarter of 2024 and a 4.1% increase in profit after tax, thus highlighting its resilience. Results that tend to demonstrate the company’s ability to ensure its growth and stability. Which makes it an attractive investment in Nigeria.

Source: Agency EcoFin