MTN has raised about $1 billion via sale of bonds, the first time it has done this since 2014.
MTN recently agreed a fine of about N350 billion with Nigerian Communications Commission (NCC) leading it to declare its first ever loss last year.
According to MTN “Proceeds of the issue, which is due to settle on 13 October 2016, will be used for purposes of capital expenditure; to pay down working capital facilities; and for general corporate purposes,”
We expect that some of the cash flows will be channelled towards payments of the Nigerian fine which it had staggered for about three years in an agreement with the NCC.
MTN borrowed two notes of $500 million each, maturing in February 2022 and October 2026 respectively.
The five year note has a coupon of 5.37% and the ten year note 6.5%, compared to a coupon of 4.75% percent the last time it issued a 10 year bond in 2014.