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SEC approves MTN Nigeria’s plan to borrow N100bn for network expansion, others



Court fixes date to hear MTN’s suit against CBN in $8.1bn transfer

The Securities and Exchange Commission (SEC) has approved MTN Nigeria’s request to borrow N100 billion from the securities market for its network expansion.

MTN Nigeria had in July wrote the SEC to obtain permission to register a new N200 billion Bond Issuance Programme, its second bond registration in the last 12 months.

The previous bond was successfully issued with MTN Nigeria borrowing N110 billion with a 13 percent interest rate due for 2028, and another N90 billion with a rate of 12.75 percent and due for maturity in 2031.

The mobile telecommunication giant confirmed the development in a statement issued on Thursday by the company’s secretary, Uto Ukpanah.

The funds, according to MTN Nigeria, will also be used to finance working capital management, and general corporate purposes.

READ ALSO: MTN begins rollout of 5G network in Lagos, Abuja, five others

The statement read: “MTN Nigeria Communications Plc (MTN Nigeria) has completed registration with the Securities and Exchange Commission (SEC) of its new N200 billion bond issuance programme announced in July 2022.

“Consequently, MTN Nigeria has received SEC’s approval to launch the Series I (Tranche A) 4-Year Fixed Rate Bond and Series I (Tranche B) 10-Year Fixed Rate Bond under the programme. The Issuance continues to reinforce MTN Nigeria’s strategy of diversifying its funding sources in line with its corporate objectives.

“MTN Nigeria will launch the book build in respect of the Series I (Tranche A and B) Bond on 15 September 2022.”

The approval came just one week after MTN informed its shareholders and the capital market that it plans to borrow N23 billion through Series 3 Commercial Paper notes under its N150 billion Commercial Paper Issuance Programme.

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