UPDATE 1-MTN Nigeria to tap debt market in first quarter - CFO
Reuters
Published Mar 03, 2021 16:31
(Adds detail)
By Chijioke Ohuocha
ABUJA, March 3 (Reuters) - MTN Nigeria MTNN.LG plans to
tap the debt market in the first quarter and has applied to the
Nigerian Securities and Exchange Commission (SEC) for approval,
its chief finance officer said on Wednesday.
Yields in Nigeria are at historic lows after the central
bank cut rates twice last year to lower borrowing costs for the
government, creating opportunities for firms to sell debt at
more attractive rates.
Previously, the central bank had kept rates high with a view
to attracting foreign investors to buy Nigerian bonds.
"There is an application with SEC. We are going to be tap
the market to optimise our funding cost," MTN Nigeria CFO Modupe
Kadri told a call with analysts, without disclosing how much the
company intended to raise.
The Nigerian division of South Africa's telecoms firm MTN
MTNJ.J said on Sunday its 2020 pretax profit rose to 298.9
billion naira and that it was at an advanced stage in renewing
its operating licence, which is due to expire in August.
Kadri said a paucity of dollars in Nigeria was challenging
but he hoped that as oil prices start to recover, dollar
liquidity would improve. He said that dollar loans accounted for
6% of its total debt.
MTN Nigeria was looking to repatriate $250 million to $300
million in backlog dividends and had so far brought back about
$20 million, Kadri said.
He said the ability of investors to bring funds into the
country will help the naira.
The naira dropped on Wednesday to a low of 410.58 per dollar
on the spot market, based on quotes from investors.
Asked about the outlook for growth, Kadri said: "What we
have done is to put in place trade lines in excess of $180
million, backed by naira ... at different terms to help finance
capital expenditure."
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Written By: Reuters
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