MTN Nigeria Plc, under the leadership of CEO Karl Toriola and guided by Company Secretary Uto Ukpanah, is set to issue series 8 and 9 Commercial Papers (CP) valued at N52.896 billion (USD1 = NGN788.330) on August 23, 2023. This move is part of its expansive N250 billion issuance program, which includes a redemption of N52 billion in September 2023. The initiative aims to diversify financing options and address short-term working capital needs.
This issuance comes following MTN Nigeria's successful Series 6 and 7 Commercial Papers under the same program. They managed to raise N125 billion, significantly surpassing their initial target of N100 billion, a testament to MTN Nigeria's robust financial health and industry leadership. The current issuance includes a 181-day CP yielding 13% and a 265-day CP yielding 13.50%.
Despite experiencing a significant year-on-year dip in profit before tax from N132.04 billion in Q3 2022 to N32.08 billion in Q3 2023, and an increased net finance cost of 174.4%, MTN Nigeria has managed to increase its revenue by 21.8% year-on-year, totaling N614.2 billion for Q3 2023. This surge has led to an escalation in the group's nine-month revenue to N1.78 trillion, marking a strong year-on-year growth of 21.76%.
The company also expanded its mobile subscriber base to a record-breaking 77.6 million users, an increase of approximately two million users, with total data traffic rising by 46.3%. Moreover, the company's fintech business showed signs of recovery with active wallets rising by 1.6 million.
The proceeds from the new commercial paper issuance are earmarked for meeting short-term working capital requirements, aligning with the company's strategic financial objectives.
MTN Nigeria's commitment to issuing series 8 and 9 Commercial Papers underscores its strategy to diversify funding sources and strengthen its financial position, even in light of a sharp decline in profit before tax and earnings per share falling by 45.2%.
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