Rating Release
Agusto & Co. hereby affirms the “Aa+” rating assigned to MTN Nigeria Communications PLC’s ₦110 Billion Seven-Year 13% Senior Unsecured Fixed Rate Series 1 Bond Due 2028
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “Aa+” rating assigned to MTN Nigeria Communication PLC’s ₦110,001,000,000 Seven-Year 13% Senior Unsecured Fixed Rate Series 1 Bond Due 2028 (“Series 1 Bond”, “the Bond” or “the Issue”) under a ₦200 billion Bond Issuance Programme”. The rating reflects the very low credit risk associated with the Issue supported by MTN Nigeria’s good and sturdy profitability level, very strong cash flow position, low leverage metrics, adequate working capital and a stable, qualified and experienced management team. The rating also considers the Issuer’s leading position in the Nigerian Telecommunications Industry buttressed by a broad range of spectrum licenses supporting its ongoing 4G expansion & 5G rollouts and a good corporate governance framework.
In May 2021, MTN Nigeria Communications PLC issued a ₦110 billion 13% SevenYear Senior Unsecured Fixed Rate Bond Due 2028 under the ₦200 Billion Debt Issuance Programme. The Series 1 Bond is a direct, senior, unsecured and unsubordinated debt and ranks pari passu with other direct, senior and unsecured debt obligations of the Issuer. Part of the Bond proceeds were used to refinance some existing borrowings of the Issuer while the remaining were utilised to part-finance the ongoing network infrastructure expansion projects.
The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
