MTN Nigeria awaits regulatory approval for N89.999 bn bond

MTN Nigeria Communications Plc (NGX: MTNN) says the company has submitted application to the Securities and Exchange Commission (SEC) for the clearance of transaction documents for series 2 of its N200 billion registered shelf programme.

The series 2 which amounts N89,999,000,000 is the balance of the N200 billion bond issuance as the telecommunication giant said it successfully raised N110,001,000,000 in May 2021.

This was contained in notification signed by Uto Ukpanah, the company secretary, and published on the Nigerian Exchanged.

MTN Nigeria said that the final decision on the bond will be made upon receipt of all regulatory approvals, adding that the investing public will by duly notified.

MTN Nigeria’s credit rating was recently upgraded to the highest possible long and short-term corporate rating of “AAA” by GCR.

Chapel Hill Denham Advisory Limited is the Lead Issuing House for the bond, while the Joint Issuing Houses are 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 Nairametrics reported.

The bond will be offered at fixed rate with a tenor of 10 years, 7 Year moratorium, amortizing thereafter in 3 equal annual instalments until maturity according to the report.

The minimum Subscription is N10 million and in multiples of N1 million thereafter

The bond will be listed on FMDQ Securities Exchange Limited

The equity price of MTNN closed flat at N175.00 per share on Tuesday on the Nigeria Exchange. The share price remains unchanged at the time of writing this report.

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