After NSE listing, MTN Nigeria to raise $555 million


To further expand its business in its largest market, South Africa’s MTN Group said it will see to the raising of about $555 billion.

The NSE-listed mobile carrier said the fund will solely be used in Nigeria, its largest market where it controls about 50 million subscribers.

The fund is approximate of N200 billion in local currency basis.

According to Bloomberg who MTN Nigeria’s Chief Financial Officer, Adekunle Awobodu, said the fund will be raised from loans, bond and other financial instruments.

Awobodu said that the raising will be used to finance capital expenditure to increase the reach and efficiency of its network.

It would be recalled that MTN listed its shares on the Nigerian Stock Exchange last week after three years of postponement. The country’s largest mobile carrier said it listed $56 million worth of its shares at nominal price of N0.02 kobo per share. Prior to the listing, the mobile carrier had converted its ownership structure to a public limited liability company (plc), a move that signals the company is no longer exclusive of rich elites.

If MTN Nigeria goes ahead to raise the fund, it will be its first non-equity fundraising as a listed company. The performance of the notes to be sold would also hint investors on the long term investment-case perception of the mobile carrier.

Globacom Limited and Bharti’s Airtel Nigeria are two of its major rivals in a market seeing declining voice revenue as digital becomes a competitive product with lower margin horizons.