MTN Nigeria Communications Plc says it is in the process of issuing up to N23 billion series three commercial paper notes.
The telco announced this on Tuesday in a corporate filing on the Nigerian Exchange Limited (NGX) signed by Uto Ukpanah, the company secretary.
It said that the proposed series three commercial paper is part of its N150 billion issuance programme.
Commercial papers are short-term debt securities typically issued by creditworthy corporations looking to raise funds from the public to meet working capital requirements as a viable alternative to bank credit.
This means that companies borrow money from the public by issuing short-term promissory notes, usually unsecured, with the promise of repayment at the date of maturity.
“MTN Nigeria Communications Plc, hereby, notifies Nigerian Exchange Limited and the investing public of its proposed issuance of up to N23 billion series three commercial paper notes under its N150 billion commercial paper issuance programme,” the notice reads.
“The issuance is part of the company’s strategy to diversify its financing options, with the funds deployed towards working capital and general corporate purposes.
“Further details on the issuance as well as subsequent issuance will be communicated to the market as the transaction occurs.”