Telecommunications company, MTN Nigeria, has disclosed its intention to raise N100 billion through an unsecured promissory note, commercial paper.
In a corporate document released to the capital market authority, Nigerian Exchange Limited (NGX), on Wednesday, MTN Nigeria proposed issuance of up to N100 billion Series 6 & 7 Commercial Paper notes.
MTN Nigeria said the capital raised from the commercial paper issued will be disbursed to finance short-term working capital and funding requirements.
According to the statement provided by the network provider, raising funds through commercial paper will diversify its financing options.
“MTN Nigeria Communications PLC (“MTN Nigeria” or the “Company”) hereby notifies the Nigerian Exchange Limited and the investing public of its proposed issuance of up to N100 billion Series 6 & 7 Commercial Paper notes under its Commercial Paper Issuance Programme (the “Issuance”).
“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 as well as subsequent issuances will be communicated to the market as the transactions occur,” the telco said.
Meanwhile, the proposed fundraising comes at a time the firm’s parent company, MTN Group, disclosed that it will sell a minority stake in its Financial Technology (FinTech) business.
The Chief Executive Officer of MTN Group, Ralph Mupita, said the minority stake would be sold to Mastercard and the transaction value of its fintech business will rise to $5.2 billion.
“MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis.
“The signing of the definitive investment agreements is expected to occur in the very near term as we approach the finalization of customary due diligence,” the parent company said.