The conclusion of Series 11 and 12 under MTN Nigeria's ₦250 billion Commercial Paper Issuance Program has been reached. Initially targeting ₦50 billion, the offering garnered substantial interest, resulting in an oversubscription rate of 150%. Consequently, ₦75.18 billion was issued, as disclosed in a filing with the Nigerian Exchange (NGX) on Friday.
The oversubscription indicates strong investor confidence in the company, even amid a difficult financial year. MTN Nigeria experienced a loss after tax of ₦514.9 billion for the nine months ending September 30, 2024, largely attributed to the devaluation of the Nigerian Naira. The company incurred net foreign exchange losses of ₦904.9 billion, which considerably increased finance costs.
Despite these challenges, MTN Nigeria demonstrated substantial growth in service revenue, which rose by 33.6% year-on-year to ₦2.35 trillion during the period. This growth was fueled by a 52.3% increase in demand for data services and an 18% rise in fintech services.
The commercial paper issuance attracted interest from asset managers, banks, insurance companies, and various institutional investors. However, pension funds were excluded due to a temporary suspension imposed by the National Pension Commission, which is awaiting updated guidelines from the Securities and Exchange Commission.