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HomeCompany NewsMTN Nigeria plans fresh N200 bln bonds to boost network expansion

MTN Nigeria plans fresh N200 bln bonds to boost network expansion

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By Samuel Bankole 

The local unit of South Africa’s telecom giant, MTN Nigeria said it plans to raise fresh N200 billion bonds from the capital market after the firm successfully raised a similar amount last year.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the telecom firm said it has applied to the Securities and Exchange Commission (SEC) for the purpose of registration of the new bond issuance programme.

It said the “Second Bond Issuance Programme is a follow-on to the successful N200 billion debut Bond Issuance Programme in 2021 under which the Company issued the N110 billion 13.00 per cent 7 Year Series I bonds due 2028 and N90 billion 12.75 per cent 10 Year Series Il bonds due 2031.”

According to the firm, the fresh bond issuance is intended to boost its capital expenditure and improve infrastructure.

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“The proceeds of the bond issuance will be used for capital expenditure (network expansion), working capital management and general corporate purpose.

“The Company will decide on issuances under the Second Bond Issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals,” MTN Nigeria said in the filing.

The telecom plans for bond issuance is coming on the heel of Tuesday’s benchmark interest rate hike, which pushed up the Monetary Policy Rate (MPR) by 100 basis points to 14 per cent.

Analysts are projecting a fresh increase in the cost of raising funds in the economy as a result of the hike in benchmark interest rate by the financial system regulator.

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