MTN Nigeria Communications Plc has applied with the Securities and Exchange Commission to register a new ₦200 billion bond issuance programme.
This was disclosed in a filing to the exchange by MTN Nigeria Communications Plc to register a follow-on ₦200 billion Bond Issuance Programme.
The proceeds of the new bond issuance will be used for capital expenditure, working capital management, and general corporate purposes, according to the company.
The company stated, “MTN Nigeria Communications Plc has applied to the Securities and Exchange Commission in respect of the registration of a new ₦200 billion Bond Issuance Programme (Second Bond Issuance Programme).
“This second Bond Issuance Programme is a follow-on to the successful ₦200 billion debut Bond Issuance Programme in 2021 under which the company issued the ₦110 billion 13.00% 7-year series I bond due by 2028 and ₦90 billion 12.75% 10-year series II bonds due 2031. 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 issuance under the second Bond issuance Programme in due course subject to prevailing market conditions and obtaining relevant regulatory approvals”.
MTN Nigeria Communications (MTN Nigeria) announced the listing of its ₦110 billion Series 1 Senior Unsecured Fixed Rate Bond on the FMDQ Securities Exchange Limited platform earlier this year.
The announcement came after the Securities Exchange’s Board Listings and Markets Committee approved the bond’s listing.
Recall that, As of May 2022, Nigerian mobile network operators had 301.5 million lines connected to their networks. SIM cards from MTN, Airtel, Globacom, and 9Mobile are among them.
According to data released by the Nigerian Communications Commission, only 204.2 million of these numbers were in active use (NCC). This means that 97.3 million lines on the networks were rendered inactive.
A mobile line is considered inactive if the subscriber does not use it to make or receive calls or access data services for at least 90 days. These lines are distinguished from active lines because they generate no revenue for telecom operators during the specified period.