Securities and Exchange Commission (SEC) has given approval for MTN Nigerian Communications Plc (NGX: MTNN) to launch its Series II 10-Year Fixed Rate Bond (Series II Bond).
The was disclosed by MTN Nigeria in a corporate action notification published on the Nigerian Exchange.
MTN Nigeria had on 21 September 2021 announced that 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.
MTN Nigeria said it will launch the book build in respect of the Series II Bond on 8 October 2021.
The telecommunication giant said the “bond issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources.”
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 N174.90 per share on Friday on the Nigeria Exchange. YTD the share price is up by 2.94%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.