Culled—Proshare

June 3, 2020

By Arthur Stevens Asset Mgt

MTN Nigeria Communications Plc (“MTN Nigeria”, “the Company” or “the Issuer”) Series I and II Commercial Paper Issuance (“the “Issuance”), under its N100 billion Commercial Paper (“CP”) Issuance Programme is NOW OPEN.  The proceeds from the CP Issuance will be used to support MTN Nigeria’s working capital and general corporate purposes. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market. The Offer is scheduled to close on Thursday, June 4, 2020.

MTNN is the leading telecommunications operator in the largest telecoms market in Africa. The Company is the largest mobile operator and undisputed market leader in Nigeria as measured by total mobile subscribers (c. 70 million), active data users (c. 26.8 million), revenue (almost 50% of industry), and profit pool. MTNN is well positioned for the long term with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network (c. 29,000km) that spans across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – and the exciting market opportunity Nigeria brings. Nigeria offers an attractive telco market proposition as Africa’s largest economy and most populous country.  Mobile voice and data subscription will continue to be a major part of consumer spending, largely driven by increased adoption by the young population. It is important to note that in the recent COVID-19 environment, MTNN has continued to sustainably add new subscribers, and customer voice and data usage remains resilient.

MTNN is rated Aa+ by Agusto & Co. which reflects the Company’s history of strong financial performance – record revenue in excess of N1 trillion (largest revs by a listed corporate), stable and healthy operating profit metrics (+53% EBITDA margin), comfortably low leverage (0.4x Net Debt/EBITDA, 10.8x interest coverage) that is predominantly local currency, and strong fee cash flow – its experienced and dedicated management team, and the beneficial relationship with MTN Group (Africa’s leading cellular telecommunications company with strong presence in 21 countries (including the Middle East) with over 250 million subscribers).

Please see above, a summary of the terms of the Offer:

For further information; kindly send a request via info@arthursteven.com