'Programme launch' MTN Nigeria Communications Plc set to issue N89.999 billion bond

MTN Nigeria Communications Plc is preparing to launch Series 2 Bonds of up to ₦89.999 billion.

This is according to a mail sent from Chapel Hill Denham Advisory Limited to investors

“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.

“In Africa’s biggest telecoms market, MTN Nigeria is the dominant telecommunications operator.
In terms of overall mobile subscribers (c. 68.9 million) and active data users, the Company is Nigeria’s largest and uncontested market leader (c. 32.5 million).
MTN Nigeria is well-positioned for the long term thanks to its unrivaled infrastructure investments – the most extensive 2G, 3G, and 4G network, the largest fiber network (c. 30,000km) spanning Nigeria, the largest physical and digital distribution platform, and a diverse spectrum portfolio – as well as the exciting Nigerian market opportunity.

“MTN Nigeria’s credit rating was recently raised by GCR to the highest possible long- and short-term corporate rating of “AAA.”
MTN Nigeria is Africa’s first mobile network operator, and one of just two companies in Nigeria to receive such a grade.
The grade is based on the Company’s extremely strong competitive position, as well as its high profits and cash flow, which have helped it maintain a healthy 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 a strong presence in 21 countries (including the Middle East).”

A summary of the indicative terms of the proposed offer is indicated below.

Issuer: MTN Nigeria Communications Plc

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

Ratings (Issue): AAA (GCR); [•] (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 and Vetiva Capital Management Limited.

Programme Size: N200 billion

Issue Size: Up to N89.999 Billion

Interest Basis: Fixed Rate

Ranking of Bonds: Senior Unsecured obligation of the Issuer

Series: 2

Tenor: 10 Years

Principal Redemption: 7 Year Moratorium, Amortizing thereafter in 3 equal annual instalments until maturity.

Price Guidance [•]% – [•]%

Offer Open: [•], September [•], 2021

Offer Close: [•], September [•], 2031

Use of Proceeds: Optimisation of Finance and Network Expansion

Minimum Subscription: N10 million and in multiples of N1 million thereafter