MTN Nigeria Communications Plc has revealed its intention to offer series 8 and 9 commercial paper notes, amounting to a total of N52.8 billion.
This announcement was made through a corporate filing on the Nigerian Exchange Limited (NGX) and was signed by Uto Ukpanah, the company’s secretary.
The proposed series 8 and 9 commercial paper issuance is part of MTN Nigeria’s N250 billion issuance program.
The funds generated from this issuance will be directed towards fulfilling short-term working capital needs and other financial requirements.
Commercial papers are typically short-term debt instruments used by financially sound corporations as an alternative to traditional bank credit to secure funds from the public.
These promissory notes are often unsecured and are issued with the assurance of repayment upon reaching maturity.
The notice from MTN Nigeria stated, “The issuance is part of the company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital and funding requirements.
Further details on the issuance will be communicated to the market.”
In August 2023, MTN Nigeria successfully raised N125 billion through a similar issuance of commercial paper notes.