(Ecofin Agency) – As Nigeria’s largest mobile network operator, MTN plays a crucial role in connecting subscribers to voice, data and fintech services. Its activities extend beyond telecommunications, making it a key driver of the country’s digital transformation.
MTN Nigeria announced on Friday, November 15, the raising of 75.18 billion naira ($45 million) under its commercial paper issuance program, surpassing its initial target of 50 billion naira. The funds will be used to meet the Company’s short-term working capital needs.
In a press release signed by its secretary general, Uto Ukpanah, MTN Nigeria was also delighted with this oversubscription which “as part of the company’s €250 billion commercial paper issuance program.”
The offer was oversubscribed by 150%, demonstrating investor confidence in MTN Nigeria despite a difficult financial environment. The issue 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 Pension Commission, pending updated guidelines from the Securities and Exchange Commission.
The oversubscription of MTN Nigeria’s commercial papers underlines investors’ confidence in the long-term potential of the telecoms company which is currently focusing on the development of its digital and financial services offerings. An operation which arouses great interest from investors because of the new opportunities it presents in terms of income for MTN Nigeria whose growth remains stable.
During the investor call issued by MTN Nigeria on October 31, the company reported a sharp 33.6% increase in its service revenue. This growth was fueled 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 of 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, highlighting its resilience. Results which tend to demonstrate the company’s capacity to ensure its growth and stability. Which makes it an attractive investment in Nigeria.
Hikmatu Bilali
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06/11/2024 – Faced with difficulties, MTN Nigeria issues $30.4 million in commercial paper
