MTN To Raise Funds For Multiple Payments

MTN To Raise Funds For Multiple Payments

To cater for multiple needs, MTN Group, Africa’s largest mobile carrier by sales will raise funds through fixed income products, according to people with the knowledge of the matter.

The company will be needing the funds to settle several bills. First is the NGN330 billion record fine it is paying to the Nigerian government which has not been fully settled.

MTN Group is also looking at paying dividends to its shareholders. It would be recalled that MTN had in August declared its first-ever loss per earning for the first half of the year.

To remain competitive, the company will also be looking at investing CAPEX across key markets including Nigeria. MTN had in the past used bonds to raise funds in crucial moments like this.

In 2010, the company sold USD89 million bond in 2010, it will mature by next year July. Without realising it would be fined by the Nigerian government, MTN sold another USD750 million bond in 2014. This note will mature by 2024.

To bring the funds into its treasury, MTN is said to have appointed Barclays Bank, Bank of America Merrill Lynch, Standard Bank and Citigroup. They will work on the 9th of September, based on the mandate given to them.

MTN would be looking at raising funds from U.S and UK investors who are interested in buying emerging markets corporate bonds.

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