MTN Nigeria Communications Plc (NGX: MTNN) has notified the Nigerian Exchange Limited (NGX) and the investing public of its proposed issuance of up to N23bn Series 3 Commercial Paper notes under its N150bn Commercial Paper Issuance Programme.
The company says that it will deploy the funds towards working capital and general corporate purposes. The Commercial Paper Issuance forms part of the Company’s strategy to diversify its financing options, the statement said.
MTNN stated that further details on the Issuance as well as subsequent issuances will be communicated to the market as the transactions occur.
In April 2022, MTNN announced the issuance of its N127 billion Series 1 & 2 Commercial Paper under the registered N150 billion Commercial Paper Programme.
Series 1 was a 184-day Serie issuance priced at a 7.50% yield and Series 2 was a 254-day Serie issuance at an 8.50% yield.
Commercial paper is an unsecured, short-term debt instrument issued by corporations. It’s typically used to the finance short-term liabilities such as payroll, accounts payable, and inventories.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur