For the purpose of extending the coverage of its telecom network in Nigeria, MTN Nigeria Communications PLC plans to issue a 200-billion-naira bond. In that regard, the company filed a request with the Securities and Exchange Commission (SEC).
In 2021, the telecom company launched a bond issuance program of 200 billion nairas that was carried out in two operations. Market conditions and relevant regulatory approvals will dictate the timing of the new program.
This initiative is part of the MTN Group’s “Ambition 2025” strategy unveiled in March 2021. By 2025, the company aims to become the largest digital service provider on the African continent. In order to achieve this, it is increasing its investments in its platforms and network infrastructure. In the financial year 2021, MTN Nigeria saw its capital expenditure increase by 27.7% to R14.9 billion.
Proceeds from the bond issuance will be used for network expansion, working capital management and general corporate purposes, MTN Nigeria said in a statement. The company will be able to capitalize on the growth of the sector by enhancing the quality of its services and expanding its network coverage aggressively, particularly in the 4G space.