The company in a statement said the book build process
commenced on 8 October, 2021, “and was completed on 15 October, 2021. The offer
was well received with active participation from a diverse range of high value
investors, including pension funds, insurance companies, asset managers,
financial institutions, and high net worth individuals.
During the book build, the total value of subscriptions
received, peaked at N133.45billion representing a 1.48 times oversubscription.
As a result, the Series II Bond was launched at a clearing coupon of 12.75 per
cent with N89.99 billion in qualified bids”
This is as MTN Nigeria has announced MTN Group intention to
proceed with a public offer of up to 575 million shares in its Nigeria
subsidiary.
A statement signed by Company secretary, MTN Nigeria, Uto
Ukpanah on the Nigeria Exchange Limited (NGX) yesterday disclosed that the
offer is going to be in a way of book build to institutional investors and
fixed price to retail investors.
Commenting on the bond issuance, Chief Executive Officer of
MTN Nigeria, Karl Toriola, said, “We continue to be grateful for the immense
investor support, as the domestic debt capital market has yet again given us
the opportunity to raise long-term financing to aid our investments in our
network.
In line with our strategy, the bonds issued this year enable
us to diversify our funding sources and extend the maturity profile of our debt
portfolio. We are very proud of this landmark transaction and thank the
investor community for their continued confidence in MTN Nigeria’s long-term
strategy, our management team, and the overall telecoms industry.”
Also speaking, Kemi Awodein,Managing Director, Chapel Hill
Denham stated that, “We are delighted to have led and completed MTN Nigeria’s
N200 Billion Bond Issuance Programme with the pricing of the N89.999 billion
Series 2 bonds. MTN Nigeria’s strong credit story has underpinned what have
been two oversubscribed issuances in tricky market conditions this year.
Chapel Hill Denham acted as Lead Manager and Bookrunner on
the MTN debut and follow on issuances of the first bonds issued by a Nigerian
telecommunications operator further broadening Nigeria’s capital markets. We
are humbled to have led this landmark transaction and pleased to have delivered
results for MTN Nigeria and the opportunity to be a part of MTN’s continued
success story.”
Chapel Hill Denham acted as the Lead Issuing House for the
Series II Bond, and Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets,
FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted
as Joint Issuing Houses.
On the public offer, Ukpanah said it is anticipated to open
in November 2021 with a book build to institutional investors, after which a
fixed price is expected to be announced for retail investors also in November
2021.
He added: “The Offer is expected to close in December 2021.
This is the first step in MTN Group’s previously communicated statement of
intent to sell down approximately 14 per cent of its current shareholding in
MTN Nigeria.”
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