MTN Nigeria will issue a N89.999 billion bond

MTN Nigeria Communications Plc is planning to issue up to 89.999 billion in Series 2 Bonds.

According to an email sent to investors by Chapel Hill Denham Advisory Limited and seen by Niarametrics, this is the case.

The message is as follows:

“Chapel Hill Denham Advisory Limited is pleased to inform you of the upcoming launch of MTN Nigeria Communications Plc’s (“MTN Nigeria’s”, ‘’the Company’s” or the “Issuer’s”) Series 2 Bonds of up to ₦89.999 billion (‘’the Issuance” or ‘’the Offer”) under its ₦200 Billion Bond Issuance Programme.

MTN Nigeria is the leading telecommunications operator in the largest telecommunications market in Africa. The Company is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers (c. 68.9 million), and active data users (c. 32.5 million). MTN Nigeria is well-positioned for the long term with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network (c. 30,000km) spanning across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – coupled with the exciting Nigerian market opportunity.

Most recently, MTN Nigeria’s credit rating was upgraded to the highest possible long and short-term corporate rating of “AAA” by GCR. MTN Nigeria is the first mobile network operator in Africa and is one of two corporates in Nigeria to be accorded such ratings. The rating is a reflection of the Company’s very strong competitive position, as well as its strong earnings and cash flow, which have supported a robust financial profile. The ratings further reflect MTN Nigeria’s experienced and dedicated management team, and the beneficial relationship with MTN Group – Africa’s leading cellular telecommunications company servicing over 251 million subscribers, with strong presence in 21 countries (including the Middle East).”

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The following is a summary of the proposed Offer’s indicative terms:

MTN Nigeria Communications Plc is the issuer.

(Issuer) Ratings: AAA (GCR); Aa (Agusto & Co.)

(Issue) Ratings: AAA (GCR); [•] (Agusto & Co.)

Chapel Hill Denham Advisory Limited is the lead issuing house.

Stanbic IBTC Capital Limited, DLM Advisory Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Rand Merchant Bank Nigeria Limited, and Vetiva Capital Management Limited are among the joint issuing houses.

N200 billion is the size of the program.

Issue Size: N89.999 Billion Naira

Rate of Interest: Fixed

Bonds are ranked as follows: Issuer’s Senior Unsecured Obligation

2nd series

Duration: ten years

7-year moratorium on principal redemption, then amortization in three equal annual installments until maturity.

[•] percent – [•] percent Price Guidance

The offer will be open until September [•], 2021.

Offer deadline is September [•], 2031.

Use of Proceeds: Financial Optimization and Network Expansion

Minimum subscription: N10 million, with subsequent subscriptions in multiples of N1 million.

FMDQ Securities Exchange Limited is a company that trades on the FMDQ Securities Exchange.