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Mobile Telephone Network (MTN) Group has gathered a $1.3 billion loan before its sale of bonds, to balance the N33bn Nigeria fine, address capital expenditure and pay dividends.

According to Bloomberg, “After raising the loan, the shares by sales rose by 2.2 percent to 121.49, at 12:29pm in Johannesburg yesterday, when the biggest two-day advanced since the 29th of June 2016 and valued the company at $16bn”.

Currently, MTN is issued a $1bn and a 4.8bn rand, from both local and international financial institutions. MTN has been on a road show in the United States and United Kingdom since this week, so as to increase the appetite of investors for debt security.

A director, Vestact Limited in Johannesburg, Sasha Naryshkine in his words “Mtn being able to manage the loans and attract funds from banking investors, bodes well” he said.

Adding this, he said that “this might also help Mtn get a reasonable outcome in the selling of bonds, investors would search for yields without so many risks and the best is still to come for Mtn, because the timing is good for an Mtn bond sale”.

After Mtn posted it’s ever first-half-year’s loss, which was partly caused by an agreement to settle an N330bn record fine in Nigeria, its move to attract funding came up.

The stock which had declined by 29 percent over the past one year, raised concern over the penalty a subscriber base of 233 million that had refused to grow in six months through June, even as the wireless operator struggles to repatriate the 15.4 billion rand, tied up in its Iranian unit.

It has been discovered that Mtn and its subsidiaries have $3.2bn of debt and interest payment, which will be due by the end of July 2017. Following the data of Bloomberg, this includes a $2.75bn bridge-loan term, a 2 billion rand senior unsecured loan and 1.25 billion rand of bonds coupled with the data showed.

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Tuesday, 19 June 2018
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