African multinational mobile telecommunications company MTN Group said that its Nigerian unit MTN Nigeria (MTNN) Communications has completed the issuance of an N110 billion (USD 263 million) fixed-rate bond due in 2028 under an N200 billion bond programme.
According to company sources, the bond will help refinance existing debt as well as back the deployment of critical network infrastructure and has a coupon of 13%.
A stock exchange announcement at Nigerian Exchange Limited revealed that the total value of orders received during the bookbuild was N135,151,000,000, representing a 1.32 times oversubscription of the intended N100,000,000,000 issuance.
Local media reports quoted MTNN Chief Financial Officer Karl Kadiri saying that the telco issued the bond to optimise its funding costs and plans to transfer $250 million in outstanding dividends to the Johannesburg-based group.
MTN has been getting funds for capital expenditure by way of foreign trade lines, he added.
Dollar shortages have plagued Nigeria, which is battling stagflation, frustrating businesses and foreign investors seeking to repatriate funds abroad, said a report by Reuters.
"Our priorities for 2021 remain unchanged which is to achieve double-digit revenue growth," the report quoted new chief executive Karl Toriola as saying.
Meanwhile, the telecoms firm said its first-quarter pretax profit rose 33.9% and that it has registered 35 million subscribers, around half of its base, under a Nigerian government directive to tighten SIM registration.