MTN Nigeria Series 1 Bond Issuance of Up to N100 Billion Now Open

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Friday, April 09, 2021 08:06 PM / by Stanbic IBTC / Header Image Credit:  BusinessDay NG

 

Stanbic IBTC Capital Limited is pleased to announce that MTN Nigeria Communications PLC ("MTN Nigeria", the "Company" or the "Issuer") Series I Bonds of up to N100 billion (the "Issuance" or the "Offer") under its N200 billion Bond Issuance Programme is NOW OPEN and is scheduled to close by 2pm on Friday, 16 April 2021.

 

MTN Nigeria is the leading telecommunications operator in the largest telecoms market in Africa. The Company is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers (c.76.5million), active data users (c.32.6million), revenue (almost 50% of industry) and profit pool. 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.29,500km) spanning across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings - coupled with the exciting Nigerian market opportunity.

 

MTN Nigeria is one of the highest rated firms in Nigeria with a corporate rating of 'Aa' and 'AA' by Agusto & Co and GCR respectively. The ratings are a reflection of the Company's track record of strong financial performance – record revenue in excess of N1 trillion (largest revenue by a listed corporate), stable and healthy profit margins (c. +50% EBITDA margin), comfortably low leverage (0.4x Net Debt/EBITDA) predominantly in local currency, and strong free cash flow. 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).

 

Please see below the indicative terms of the proposed Offer:

 

Issuer:

MTN Nigeria Communications PLC

Ratings (Issuer):

AA (GCR)

Aa (Agusto & Co)

Ratings (Issue):

AA (GCR)

Aa (Agusto & Co)

Lead Issuing House:

Chapel Hill Denham Advisory Limited

Joint Issuing Houses:

Stanbic IBTC Capital Limited

DLM Advisory Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Rand Merchant Bank Nigeria Limited, Vetiva Capital Management Limited

Programme Size:

N200 billion

Issue Size:

Up to N100 billion

Interest Basis:

Fixed Rate

Ranking of Bonds:

Senior Unsecured obligation of the Issuer

Series:

1

Tenor:

7 Years

Principal Redemption:

5 Year Moratorium, Amortizing thereafter until redemptions

Price Guidance

11.50% - 12.00%

Offer Open:

Friday, 09 April 2021

Offer Close:

Friday, 16 April 2021

Use of Proceeds:

Optimisation of Finance and Network Expansion

Minimum Subscription:

N10 million and in multiples of N1,000,000.00 thereafter

Listing:

FMDQ Securities Exchange Limited

 

The supporting Offer documentation can be accessed via this link MTN Nigeria Bond Issuance Docs for your review and consideration.

  1. Series I Bond Pricing Supplement
  2. Series I Trust Deed
  3. The Series I Bond Rating Reports by Agusto & Co ("Agusto") and Global Credit Ratings Co. ("GCR")
  4. The Issuer's Ratings Report by Agusto and GCR
  5. Shelf Prospectus
  6. Programme Trust Deed
  7. The Issuer's 2021 PENCOM Compliance Certificate
  8. Investor Presentation
  9. Commitment Form


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 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

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