According to report by TC Report, the raised ₦75 billion through an oversubscribed commercial paper issuance by the country’s largest mobile network operator will support the operator’s working capital and short-term liquidity needs. “The funds will support daily operations and meet immediate financial obligations,” the report says.
The ₦75 billion funds concludes MTN Nigeria’s issuance of Series 11 and 12 commercial papers, which are short-term debt instruments used by companies to raise funds from investors. These issuances were part of MTN Nigeria’s larger ₦250 billion Commercial Paper Issuance Programme, which allows the company to issue such instruments over time.
For these particular series, MTN Nigeria initial plans was to raise ₦50 billion. Perhaps, as the offering continued to met strong demand from investors, it resulted in an “oversubscription” of 150%. This means that instead of just raising the targeted amount, the company was able to issue ₦75.18 billion worth of commercial papers.
This development was disclosed in a regulatory filing with the Nigerian Exchange (NGX) on Friday, signaling the successful completion of this segment of their fundraising efforts.
Recall that MTN Nigeria recently posted a ₦514.9 billion loss amid naira devaluation and soaring FX costs. However, despite this, the company still managed to raise ₦75bn in oversubscribed commercial paper. This shows investors confidence in the company.
