N330bn fine forces MTN to sell bonds

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MTN Group Limited is currently seeking fresh funds through the sale of bonds to offset a N330 billion ($1bn) Nigerian fine, pay dividends and address capital expenditure.

This came just as the Executive Vice-Chairman, Nigerian Communications Commission, Prof. Umar Danbatta, on Wednesday opened up on the dispute leading to the imposition of N1.04 trillion on the telecoms company for failing to disconnect 5.2 million improperly registered subscribers on its network.

The telecoms operator is set to weigh investor interest in the possible bond offering. It has, therefore, mandated Barclays Bank Plc, Bank of America Corporation Merrill Lynch, Citigroup Incorporated and Standard Bank Group Limited to arrange a series of fixed-income investor meetings in the United States and the United Kingdom starting from September 9.

Bloomberg quoted the Johannesburg based company as saying in a statement on Wednesday. The dollar-denominated bond offering “is expected to follow subject to market conditions” the firm said.

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