MTN Nigeria Communications (MTN Nigeria) Plc will today close application list for its N23 billion commercial paper issuance.

MTN Nigeria is offering 184-day series three commercial  papers (CPs)  with discount rate of 10.42 per cent and implied yield of 11 per cent. The issuance is under the company’s N150 billion CP programme. Minimum subscription to the offer is N5 million and, thereafter, in multiples of N1 million.

The CP issuance comes ahead of the ongoing arrangements by MTN Nigeria to raise about N200 billion under a new capital raising programme.

The Nation had reported that the telecoms giant plans to issue two tranches of bonds ranging from four to 10 year tenors to raise new funds to partly finance its expansionary drives and further deepen its balance sheet for stable growth.

While the opening date for the new bond issue is yet to be decided, sources said the new capital raiser would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high networth investors.

MTN Nigeria will use the net proceeds of the new bond issue to support its capital expenditure, working capital and other corporate purposes.

Under the arrangements, MTN Nigeria will offer a tranche of four-year bonds and another tranche of 10-year bonds; all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.

The bond will be offered at a par value of N1000 with minimum subscription of 10,000 or N10 million. The new bonds are expected to be listed on the FMDQ Securities Exchange Limited after the completion of the issuance.

Market analysts said they expected the offer to be fully subscribed citing MTN Nigeria’s industry position and rating. The telecommunication group is rated AAA by Global Credit Rating )GCR) and Aa+ by Agusto & Co. Limited, underlining its strong financial position.

MTN Nigeria has been active in the domestic capital market this year; leveraging its strong market position to access funds. It had in May 2022 successfully raised N127 billion new debt capital, placing it in better position to diversify its capital funding.

MTN Nigeria had in My 2022 issued two commercial papers worth N127 billion. The two issuances were under its N150 billion commercial paper (CP) issuance programme. The net proceeds of the CPs were used by MTN Nigeria to support its short-term working capital and funding requirements.

MTN Nigeria is one of Africa’s largest providers of communications services and Nigeria’s premier provider of connectivity, communication and collaboration solutions. MTN Nigeria is a member of MTN Group – a multinational telecommunications group, which operates in 21 countries in Africa and the Middle East. The company serves over 77 million subscribers with national coverage and a fibre network that reaches every state in the nation.

Latest audited report of MTN Nigeria showed mobile subscribers of 68.5 million, with active data users of 34.3 million and active fintech subscribers of 9.4 million.

Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2021 showed that gross revenue increased by 23.3 per cent to N1.7 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 per cent to N877.1 billion with EBITDA margin increasing by 2.1 percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67.

Half-year results for 2022 showed profit after tax of N181.63 billion; representing 28.06 per cent growth in net profit. Total assets stood at N2.53 trillion; an increase of 16.44 per cent. Recent reports estimated that MTN Nigeria has 74.1 million mobile subscribers and 36.8 million active data users.

Market analysts said MTN Nigeria was well positioned for long-term sustainable growth due to its infrastructure investments; including the impending deployment of 5G technology due to commence this quarter. It already has 90.01 per cent 2G population coverage, 82.63 per cent 3G population coverage, and 70.75 per cent 4G population coverage.

C & I Leasing Plc is raising about N3 billion in new short-term debt capital to strengthen the balance sheet of the leasing and logistics group.

C & I Leasing is offering a N3 billion Series 1 Commercial Paper (CP) through issuance of 267-day notes with implied and discount yields of 16.5000 per cent and 14.7230 per cent. The new issuance is being done under the company’s N50 billion commercial paper issuance programme.

C  & I Leasing indicated that it would use the net proceeds of the current CP issuance “to support short-term working capital funding needs”.

The CP issuance is expected to mature on June 9, 2023 based on the offer closing date of September 13, 2022. Minimum subscription to the CP issuance is N5 million and, thereafter, in multiples of N1 million.

C & I Leasing is licensed by the Central Bank of Nigeria (CBN) as a finance company and offers operating and finance leasing services across its various markets.

C & I Leasing operates across four major business segment including marine services, fleet management, personnel outsourcing and cititracks. It has operational offices across Nigeria and Ghana. The C & I Leasing Group comprises of the parent company and three subsidiaries including Leasafric Ghana Limited; EPIC International FZE, United Arab Emirates; and C&I Leasing FZE, Nigeria. C & I Leasing also has interest in two Joint Ventures, SIFAX C & I Marine Limited, Nigeria and SIFAX C & I Leasing Marine Limited, Seychelle, East Africa.

The Thelo DB consortium – consisting of Thelo DB and Transtech Consult Limited – has signed a rail management agreement with the government of Ghana through the Ghana Railway Company Limited, to develop and operate the Western Railway Line.

The signing for the US$3.2 billion project took place in Accra, Ghana.

The project includes planning project preparation-related activities, such as feasibility studies, demand analysis, preliminary and detailed design, and procurement consulting); Implementation-systems engineering design, construction supervision, design review, audit systems engineering, testing and inauguration of rolling stock and infrastructure); and operations and maintenance management (early train operator, consulting services in terms of infrastructure operations, rolling stock operations, infrastructure and rolling stock maintenance).

When completed, the project, which includes the associated infrastructure, training and Operations and Maintenance Management, will transform Ghana’s rail network into a modern, robust and integrated railway system  from the Port of Takoradi to Huni Valley to Obuasi, including the branch line from Dunkwa to Awaso to Nyinahin and to Eduadin.

The investment for the Ghana Western Railway Line Project will ensure that the rail infrastructure is upgraded and that there is interoperability of railway systems, new standardised rolling stock, required maintenance facilities, a spare parts regime and operational integration into other transport infrastructure and systems.

John-Peter Amewu, Minister of Railway Development, Ghana, commented: “Currently, the transportation of freight, including minerals and other bulk commodities along the Western Corridor is predominantly by means of the road network due to the poor state of the railways. The Western Railway Line has a very huge potential in terms of the haulage of both liquid and bulk cargo. For instance, current projected annual haulage on the Western Rail Line for manganese and bauxite is about 7 million and 15 million metric tonnes respectively. An additional 5 million metric tonnes of bauxite is estimated to be mined and transported annually from the new bauxite deposit at Nyinahin using the railway. The Bulk Oil Storage and Company Limited has also projected to haul over 1.5 billion litres of oil products along the corridor. Other commodities that are transported along the Western Corridor include Cocoa, Timber, Cement, among others which also have huge haulage potential based on their respective projected volumes. Rail transport is therefore critical to the success and achievement of all these traffic projections since it provides a cheaper and more efficient means of transporting such commodities.”

The fully integrated development model is an innovative one for Africa the railway sector especially because the Western Rail Line Project will be funded on a ring-fenced project finance basis.

This agreement is further testament to the importance that President Akufo-Addo’s government places on our railway sector.

Ronnie Ntuli, Chairman of Thelo DB, said: “The intention of this Project is to develop, implement and operationalise the Western Railway Line as a fully integrated railway system to enable efficient mobility of freight and passengers. This, will in turn, catalyse investment, infrastructure development, promote trade, skills development and job creation thereby generating broader economic growth in Ghana, and hopefully, the broader West Africa region.”

Mr. Ntuli praised the government of the Republic of Ghana, for identifying the railway sector and this project in particular as a catalyst for development, and the role of Ministry of Railway Development and the Ghana Railway Company, in operationalising the vision to develop and modernise Ghana’s hard and soft railway infrastructure systems.

Several shareholders of Nigeria’s oldest and largest conglomerate, UAC of Nigeria (UACN) Plc, have converted their recent cash dividends to additional equity stakes in the conglomerate.

The conversion increased the shareholdings of the investors without recourse to primary offer or secondary market transaction.

Regulatory filing at the weekend indicated that shareholders converted cash dividends to 44.835 million ordinary shares of 50 kobo each under the conglomerate’s scrip dividend election scheme.

With the listing of the additional shares that arose from the conversion at the weekend, the total issued shares of UACN increased from 2.881 billion ordinary shares of 50 kobo each to 2.926 billion ordinary shares of 50 kobo each.

The cash dividend-to-shares conversion provides UACN with additional equity funds to further deepen its balance sheet; which had seen injection of substantial debt capital in recent period.

UACN has been active in the debt capital market as it seeks to leverage its balance sheet to meet its expansive business development plan. In October 2021, it launched a new capital raising plan to source for some N50 billion in debt capital from the general investing public.

Earlier in May 2022, UACN offered 90-day and 181-day commercial papers (CPSs) with yield of between eight per cent and 8.25 per cent to fixed-income investors to raise N20 billion.

UACN stated that it would use the net proceeds of the short-term debt issuance to fund short-term working capital requirements of the group. The group’s first quarter results for 2022 had shown that its performance was impacted negatively by finance costs.

First quarter results of UACN for the three-month period ended March 31, 2022 had shown that group turnover rose by 25.6 per cent to N¦ 27.7 billion, driven by growths across the business segments. Animal feeds and other edibles had risen by 18 per cent, paints, 81.2 per cent; packaged food and beverages, 9.9 per cent and quick service restaurants which turnover rose by 30.1 per cent.

Gross profit grew by 26.5 per cent to N5.1 billion with gross margin at 18.3 per cent. Operating profit jumped by 62.2 per cent to N1.9 billion. Profit before tax however dropped by  4.8 per cent to N979 million. The profitability was impacted by higher finance costs. Earnings per share closed first quarter 2022 at 18 kobo, higher than 12 kobo recorded in comparable quarter of 2021. The increase in net earnings reflected the benefit of recognising 100 per cent of UAC Foods Limited’s earnings in 2022 as against 51 per cent in first quarter 2021.

Group Managing Director, UACN of Nigeria (UACN) Plc, Fola Aiyesimoju said the group’s working capital levels and short-term debt were elevated on account of the decision to increase inventory holding in the animal feeds and other edibles segment to mitigate the risk of supply chain disruptions.

“We are closely monitoring inventory levels and leverage and expect the negative impact of interest expense to unwind as inventory levels normalise. Earnings per share increased 50 per cent year on year, reflective of the earnings accretive acquisition of the 49 per cent stake in UAC Foods which we did not own in the first quarter of 2021.

“For all our businesses, the impact of rising inflation is a key focus and our management teams remain focused on proactive pricing. We are mindful of the recent events in Russia and Ukraine and resultant supply disruptions of key commodity inputs including wheat, vegetable oil, maize and fertilizer. We remain committed to executing our key priorities to simplify our structure and processes, drive profitable growth across our core operating segments, and enhance shareholder value,” Aiytesimoju said.

UACN has said it would acquire more companies as part of organic and inorganic growth strategies aimed at accelerating the growth of the widely diversified group.

Aiyesimoju said the conglomerate would explore acquisitions to hasten its growth and deliver better long-term returns to shareholders.

He said UACN was still interested in strategic acquisitions in line with the growth objectives of the group.

“Going forward, our focus remains on creating shareholder value and we continue to prioritise growth, scale, and simplicity to achieve this. We will explore acquisitions as an avenue to accelerate growth,” Aiyesimoju said.

UACN Group includes subsidiary and associate companies operating in the animal feeds and other edibles; paints; packaged food and beverages; quick service restaurants; logistics and real estate segments. Members of the group include Grand Cereals Limited, Livestock Feeds Plc, CAP, UAC Foods Limited, UAC Restaurants Limited and MDS Logistics Limited.

Application list for the N20 billion Sukuk by Family Homes Funds Limited (FHFL) closes today amid expectations that long-term non-interest funding would further stimulate the development of affordable housing in Nigeria.

The net proceeds of the N20 billion Sukuk issuance will be used to finance development of affordable homes for low income households.

FHFL, through its special purpose vehicle, Family Homes Sukuk Issuance Programme Plc (FHSIP) is issuing a N20 billion Series II Ijarah Sukuk, to complete its N30 billion Sukuk issuance programme.

Last year, FHFL had accessed the market through its N10 billion seven-year 13 per cent Series 1 Ijara Lease Sukuk due 2028. The debut issue recorded an oversubscription of more than twice of the issue value.

The N20 billion issuance is the second-ever certified corporate Sukuk in Nigeria. The offer had been reviewed and certified by the Central Bank of Nigeria’s Financial Regulation Advisory Council of Experts (FRACE) and also registered with the Securities & Exchange Commission (SEC).

FHFL is offering a seven-year fixed rate Sukuk Al-Ijarah to discerning investors through a book-building, pre-order system. Minimum subscription to the issue  is  N10 million and thereafter in multiples of N1 million. The Sukuk will, thereafter, be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange.

The rental rate is provisionally fixed between 13.50 per cent and 14.00 per cent with rental distribution on a semi-annual basis. The Sukuk will be repaid on the basis of amortisation of the principal repayment over the tenor of the Ijarah.

Family Homes Sukuk Issuance Programme is rated BBB+ by Global Credit Rating (GCR) and Bbb by Agusto & Co. The Sukuk issuance is rated on its own BBB+ by GCR and A+ by Agusto & Co.

Rental distribution will be semi-annually in arrears over the life of the Ijarah while repayment will be by the way of amortised principal repayment over the life of the Ijarah.

FHFL is a quasi-government entity owned by the Federal Government, through the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority (NSIA). It was established to impact the quality of lives of Nigerians, particularly the poor and vulnerable.

FHFL’s fund raising is to support its focus on providing decent home as a pivot towards necessary comfort and security for citizens on low income. FHFL believes there is a need to bridge the infrastructural deficit of decent homes for Nigerians estimated to be at 22 million, particularly for those on low income.

As a social housing initiative promoted by the government as part of its social intervention programme; FHFL plans to invest up to N1.3 trillion in the development of 500,000 affordable homes nationwide over the long-term. In the process, this is also expected to create up to 1.5 million jobs whilst enabling homeownership.

Family Homes Funds initiative is in line with the New Urban Agenda and the United Nations Sustainable Development Goal of promoting sustainable cities and communities, reducing  poverty, promoting good health and well-being, economic growth, and reducing inequalities-Sustainable Goal No 11.

The Chartered Institute of Bankers of Nigeria (CIBN) has reached agreement with two other stakeholders in the financial technology (fintech) segment to deepen fintech education and training, in a move that is expected to foster financial innovation.

The CIBN executed a collaborative agreement with the FinTec NGR and Fintech Development and Advocacy Initiative (FSI).

Under the deal, the three institutions will award fintech certification, which bridges the tech talent gap and further drive the implementation of the competency framework in the banking and finance industry.

Speaking at the signing ceremony in Lagos, President, CIBN, Dr Ken Opara said the agreement was a further step towards realising the mandate of the institute to promote professionalism whilst enhancing knowledge and competencies in the financial services ecosystem.

According to him, CIBN recognises its roles as a bridge that will engender positive handshake among the players in the financial services industry through capacity building programmes, training, content development, advocacy and sound corporate governance policies.

He noted that a major part of his administration six strategic pillars is financial innovation and transformation, under which the institute plans to institutionalise fintech certification in collaboration with other credible bodies to sharpen the minds and awareness of industry players in optimising technology for financial inclusion and growth.

He commended the Bankers Committee and the Central Bank of Nigeria for appointing the CIBN as the accreditation agency for the implementation of the banking industry competency framework, assuring that the institute is determined to make a success of the assignment which will lead not only to more knowledgeable professionals but improved service delivery.

“It is therefore imperative for us to now translate this agreement from a commitment on paper to a reality. On this note, we will not rest on our oars till the commencement of the maiden edition of the examinations in April 2023. I want to assure you that the time between now and then will be used to undertake the development of the framework for the curriculum and examination, development of study packs, obtain the endorsement of the Central Bank of Nigeria and other relevant bodies and creation of awareness among the stakeholders,” Opara said.

• Index rebounds to 50,000 points

• Average return rises to 17.16%

Nigerian equities played the contrarian with a net capital gain of N197 billion at the weekend, one of the main safe havens in the global market rattled by the bears.

Average return at the market for the week stood at 0.735 per cent, nudging the average year-to-date return to 17.16 per cent.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX) regained the 50, 000 points mark to close weekend at 50, 045.83 points as against its week’s opening index of 49, 682.15 points.

Aggregate market value of quoted equities at the NGX rose from the week’s opening value of N26.797 trillion to close the week at N26.994 trillion at the weekend, representing an increase of 0.735 per cent or N197 billion.

Nigerian equities’ rallies came on the heels of the beginning of interim dividend recommendations by companies that traditionally declare interim payouts on the basis of their half-year results.

The performance of the market was exceptional in the bearish global stock market as heightened global uncertainties dampened investors’ appetite. All major global indices closed negative at the weekend. In United States, the Dow Jones Industrial Average (DJIA) dropped by 1.9 per cent while the S & P 500 declined by 2.2 per cent. In United Kingdom, the FTSE 100 Index dropped by 3.8 per cent. In Japan, the Nikkei 225 Index posted average loss of 3.5 per cent. China’s SSE Index dropped by 1.5 per cent.The STOXX Europe- which tracks European equities’ market, declined by 3.2 per cent. The MSCI EM- which tracks the broad emerging market, lost three per cent while its twin index,  the MSCI FM- which tracks the frontier markets, recorded average negative return of -1.9 per cent.

With more than two advancers for every decliner, the rally at the Nigerian market was driven by market-wide positive sentiments. All sectoral indices at the NGX closed on the upside, underlining the improved appetite for quoted equities. The NGX 30 Index- which tracks the 30 largest companies at the stock market, rose by 0.69 per cent.

The NGX Consumer Goods Index led the rally with average gain of 2.01 per cent. The NGX Industrial Goods Index followed with a gain of 1.36 per cent. The NGX Banking Index rose by 1.21 per cent. The NGX Oil and Gas Index appreciated by 0.65 per cent. The NGX Insurance Index inched up by 0.05 per cent. The NGX Pension Index- which tracks stocks that qualify for pension funds investments, appreciated by 1.05 per cent while the NGX Lotus Islamic Index- which tracks stocks that comply with Islamic investment rulings, posted average return of 0.75 per cent.

There were 43 gainers to 21 losers last week compared with 27 gainers and 21 losers recorded during the previous week. Vitafoam Nigeria led the gainers with a gain of 16.26 per cent to close at N23.60. E-Tranzact International followed with a gain of 16.23 per cent to close at N2.65 per share.  rose by 11.11 per cent to close at N3.40. Guinness Nigeria appreciated by 9.88 per cent to close at N87.90. Nigerian Exchange Group trailed with a gain of 9.73 per cent to close at N22 per share while Trans-Nationwide Express rose by 9.52 per cent to close at 69 kobo per share.

On the negative side, Unilever Nigeria led the chart with a drop of 9.63 per cent to close at N12.20 per share. McNichols dropped by 9.46 per cent to close at 67 kobo. CWG declined by 9.09 per cent to close at 90 kobo. John Holt lost 8.99 per cent to close at 81 kobo. R T Briscoe depreciated by 8.57 per cent to close at 32 kobo. Honeywell Flour Mill lost 6.99 per cent to close at N2.53 while University Press dipped by 5.29 per cent to close at N1.79 per share.

The momentum of activities also improved significantly during the week with total turnover of 1.195 billion shares worth N12.924 billion in 19,305 deals, in contrast with a total of 914.443 million shares valued at N15.263 billion traded in 18,021 deals two weeks ago.

The financial services sector remained atop activity chart with 1.017 billion shares valued at N5.685 billion traded in 10,107 deals; thus contributing 85.09 per cent and 43.99 per cent to the total equity turnover volume and value respectively. The information and communication technology sector followed with 37.063 million shares worth N4.575 billion in 1,996 deals while the consumer goods sector placed third with a turnover of 35.184 million shares worth N1.209 billion in 2,471 deals.

Banking stocks dominated the top activity chart with Sterling Bank Plc, Fidelity Bank Plc and Access Holdings Plc as the three most active stocks. The top three stocks accounted for 540.056 million shares worth N1.499 billion in 2,179 deals, contributing 45.18 per cent and 11.60 per cent to the total equity turnover volume and value respectively.

Analysts at Cordros Securities said they expected investors to continue to seek trading opportunities in stocks of companies that delivered impressive earnings during the second quarter earnings season despite the yield uptick in the fixed income market.

Analysts however cautioned that the absence of a near-term catalyst would likely skew overall market sentiments to the negative side, particularly as the political space gets heated.

“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings,” Cordros Securities stated in a weekend note to investors.

The need to reposition financial services industry for increased competitiveness in the emerging global financial markets will be the focus of a top-level discussion among banking and finance professionals next month in Abuja.

The Chartered Institute of Bankers of Nigeria (CIBN) is hosting the 15th Annual Banking and Finance Conference between September 13 and 14, at the Congress Hall of Transcorp Hilton, Abuja. The Annual Banking and Finance Conference is the flagship programme of CIBN and it provides a platform for all stakeholders in the banking and finance industry to share experiences and exchange ideas on contemporary issues affecting the sector and the economy.

The theme of this year’s conference is: Repositioning the Financial Services Industry for an Evolving Global Context. The event is expected to attract more than 1,000 banking and finance professionals from across 150 countries in the Americas, Australia, Asia, Europe and other parts of Africa.

Addressing a briefing on the forthcoming conference in Lagos, President, Chartered Institute of Bankers of Nigeria (CIBN) , Dr Ken Opara said the conference was in line with the mandate of CIBN to build the capacity of banking professionals and changing the banking and finance landscape through technology and fintech evolution.

According to him, the annual conference is the largest gathering of bankers in Africa as the CIBN has over the last 59 years grown its membership to about 147,950 members, the largest in Africa and one of the largest in the world.

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He added that participants at the conference would also include policymakers, regulators, operators, academicians, clients and other stakeholders in the industry; thus allowing a broad sharing of experiences and ideas on contemporary issues affecting the sector and the economy.

Opara pointed out that over the last 59 years, the institute has risen to relevance and reckoning and has continued to record outstanding accomplishments.

Chairman, Consultative Committee of the Conference and Group Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman explained that the conference would provide a veritable platform for subject matter experts and industry stakeholders to drive conversations and unanimously design a clear road map towards repositioning the financial services industry for growth and stability.

He outlined that Mr. Farouk Gumel, Chairman of Union Bank of Nigeria Plc would deliver the keynote address on the theme of the conference and set the tone for the intellectual discourse that will follow.

According to him, a total of 48 seasoned resource persons have been carefully selected to discuss the various sub-themes and proffer sustainable and workable solutions.

He said the conference was structured into five business and four break-out sessions with engaging topics that are critical to the repositioning of Nigeria’s banking and financial services industry for competitiveness within the global context while staying locally relevant.

He outlined that the topics for the business sessions included: Banking in Africa: The Role of AfCFTA and PAPSS, Nigeria’s Economy in the Last Five Years: Lessons Learnt and Choices to Make in the Next Five Years, Workforce Globalisation: Opportunities & Threat,Banking & Fintech: The Nexus and Opportunities and Climate Change: The Role of Financial Services Sector.

The break-out sessions will focus on contemporary and pragmatic issues including: Sustainable Financing: Opportunities, Challenges & Solutions for the Energy Sector; Food Security: Unlocking Nigeria’s Potential to Feed Africa; Creative Economy: Scaling for Jobs and Harnessing the Untapped Opportunities in Nigeria’s Healthcare System.                  “It is worthy of note to inform this gathering of a paradigm shift from the previous conferences. At this year’s event, ongoing research finding on Analysis of Human Capital Attrition in a Glocal Context: A Case Study of the Financial Services Industry, would be shared for information of stakeholders and a value addition to the 15th ABFC,” Suleiman said.

He noted that this year’s conference would be uniquely different from previous editions in all ramifications adding that apart from providing the participants a platform to connect with other professionals and industry stakeholders across the world, the conference promises to be intellectually engaging and stimulating.

“The business and break-out sessions have been carefully structured to address and provide enduring interventions to the myriad challenges confronting Nigeria’s business ecosystem and the financial services industry. In addition, we have firmed up arrangement to integrate

MTN Nigeria Communications (MTN Nigeria) Plc is concluding arrangements to raise about N200 billion under a new capital raising programme.

MTN plans to issue two tranches of bonds ranging from four to 10 year tenors to raise new funds to partly finance its expansionary drives and further deepen its balance sheet for stable growth.

While the opening date for the new bond issue is yet to be decided, sources yesterday said the new capital raising would be undertaken through the book-building method, an auction-like, bid-based process that usually targets investment firms and high networth investors.

MTN will use the net proceeds of the new bond issue to support its capital expenditure, working capital and other general corporate purposes.

Under the arrangements, MTN  will offer a tranche of four-year bonds and another tranche of 10-year bonds; all as fixed rate senior unsecured bonds under its new N200 billion bond issuance programme.

The bond will be offered at a par value of N1000 with minimum subscription of 10000 or N10 million. The new bonds are expected to be listed on the                 FMDQ Securities Exchange Limited after the completion of the issuance.

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Market analysts said they expected the offer to be fully subscribed citing MTN Nigeria’s industry position and rating. The telecommunication group is rated AAA by Global Credit Rating )GCR) and Aa+ by Agusto & Co. Limited, underlining its strong financial position.

MTN has been active in the domestic capital market this year; leveraging its strong market position to access funds. It had in May  successfully raised N127 billion new debt capital, placing it in better position to diversify its capital funding.

MTN had issued two commercial papers worth N127 billion. The two issuances were under its N150 billion commercial paper (CP) issuance programme. The net proceeds of the CPs were used by MTN Nigeria to support its short-term working capital and funding requirements.

percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67.

Half-year results for 2022 showed profit after tax of N181.63 billion; representing 28.06 per cent growth in net profit. Total assets stood at N2.53 trillion; an increase of 16.44 per cent. Recent reports estimated that MTN Nigeria has 74.1 million mobile subscribers and 36.8 million active data users.

Market analysts said MTN Nigeria was well positioned for long-term sustainable growth due to its infrastructure investments; including the impending deployment of 5G technology due to commence this quarter. It already has 90.01 per cent 2G population coverage, 82.63 per cent 3G population coverage, and 70.75 per cent 4G population coverage.