Chapel Hill Denham is delighted to have acted as the Lead Issuing House / Bookrunner for the recently concluded
N115 billion Series I Dual Tranche Fixed Rate Bond Issuance by MTN Nigeria Communications PLC (“MTN Nigeria”), Nigeria’s largest mobile network operator. The Transaction represents MTN Nigeria’s first outing under its new N200 Billion Bond Programme and third bond issuance – all led by Chapel Hill Denham – to date following its debut issuance in May 2021.
The bookbuild for the Series I Dual Tranche Bond Issuance – 4 Year Tranche A and 10 Year Tranche B – commenced on 15 September 2022 and closed on 21 September 2022, with a total value of
N168.54 billion in bids received, representing a 1.68x oversubscription (of the intended N100 billion issuance). The Offer was well received with active participation from a diverse range of investors, including pension funds, insurance companies, asset managers, other financial institutions, and high net-worth individuals.
The Series I Tranche A and Tranche B Bonds were issued at a clearing coupon of 13.50% and 14.50% respectively. Of the total qualifying bids, the Company opted to issue a combined value of N115 billion across both tranches – N10.086 billion in the 4-year Tranche A and N104.914 billion in the 10-Year Tranche B. The successful Series I Bond issuance is a reflection of the continued investor confidence in MTN Nigeria and its management team, as well as the depth and resilience of the domestic debt capital market. MTN Nigeria intends to use the net proceeds of the offering to finance its network expansion, optimize working capital, and fund other corporate purposes.
Commenting on the Transaction, Lanre Buluro, MD – Capital Markets, Chapel Hill Denham stated that; “We are delighted to have led and successfully completed MTN Nigeria’s
N115 Billion Series I Dual Tranche Bond Issuance under the new N200 billion Bond Issuance Programme, further deepening Nigeria’s capital markets. MTN Nigeria’s outstanding performance and strong credit story have underpinned what was an oversubscribed issuance. We are humbled to have led this landmark transaction and pleased to have, once again, been afforded this opportunity to deliver results for MTN Nigeria. Chapel Hill Denham remains committed to supporting MTN’s continued success.”
About Chapel Hill Denham
Chapel Hill Denham is a leading independent investment banking, securities trading, and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution, and investment services to corporations, governments, institutions, and individuals involved in investing in and developing Nigeria and Africa.
See other images from the signing ceremony on Friday, September 30, 2022, in Lagos below: