(Ecofin Agency) - As Nigeria's largest mobile network operator, MTN plays a crucial role in connecting subscribers to voice, data, and fintech services. Its operations extend beyond telecommunications, making it a key driver of the country’s digital transformation.

MTN Nigeria announced on Friday, November 15, that it has successfully raised ₦75.18 billion ($45 million) through its commercial paper issuance program, exceeding its initial target of ₦50 billion. The funds will be used to meet the company's short-term working capital needs.

“MTN Nigeria Communications PLC (MTN Nigeria (the Company) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 11 and 12 Commercial Paper (CP) issuance under the company’s ₦250 billion Commercial Paper Issuance Program,” a release signed by Company Secretary Uto Ukpanah stated.

The offering was oversubscribed by 150%, signaling strong investor confidence in MTN Nigeria despite a challenging financial environment. The issuance attracted a diverse range of investors, including asset managers, banks, and insurance companies. However, pension funds were notably absent due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission. 

The oversubscription of the commercial paper underscores robust investor trust in MTN Nigeria’s long-term potential. The company’s focus on expanding its digital and financial services offerings continues to attract attention. 

During MTN Nigeria's Q3 2024 Investor Call on October 31, the company reported a robust 33.6% increase in service revenue. This growth was fueled by a 9.8% rise in voice traffic, a significant 42.1% surge in data traffic, and a 5.1% increase in active users. 

The company also highlighted strong momentum in its fintech ecosystem, reflecting the growing demand for digital financial services. In terms of profitability, MTN Nigeria achieved a 5.6% increase in Q3 EBITDA and a 4.1% rise in profit after tax, underscoring its resilience. The results showcase the company’s ability to deliver growth and stability, making it an attractive investment and a pivotal player in Nigeria’s evolving digital economy.

MTN Nigeria’s ability to secure such significant funding reflects its solid market position and underscores the appetite for high-quality corporate debt instruments in Nigeria’s financial markets.

Hikmatu Bilali