MTN seeks N200bn bond, clarifies 2021 tax remittance

Telecommunication giant, MTN Nigeria, has applied to the Securities and Exchange Commission in respect of the registration of a new N200 billion Bond Issuance Programme (Second Bond Issuance Programme). In a filing with the NGX, the company said the second issuance programme is a follow-up to the successful N200bn debut bond issuance programme in 2021 […]

Telecommunication giant, MTN Nigeria, has applied to the Securities and Exchange Commission in respect of the registration of a new N200 billion Bond Issuance Programme (Second Bond Issuance Programme).

In a filing with the NGX, the company said the second issuance programme is a follow-up to the successful N200bn debut bond issuance programme in 2021 under which the company issued the N110bn 13% 7 year series I bond due 2028 and N90bn 12.75% 10 year series II bonds due 2031.

While noting that the company will decide on issuances under the second issuance programme subject to prevailing market conditions and obtaining relevant regulatory approvals, it said the bond would be used for capital expenditure (network expansion), working capital management and general corporate purpose.

In a related development, the company has clarified that it made a total contribution of up to N757.7 billion to the federal government and its relevant agencies through taxes, levies, fees and duties in 2021.

The company made the clarification in relation to media reports that it paid the sum of N618.7 billion in both direct and indirect taxes to the Federal Inland Revenue Service (FIRS) in 2021.

However, in a filing with the NGX, the company noted that direct remittances by the company to FIRS in 2021 was N291.7bn while the balance represents VAT, levies, fees and duties paid to other government agencies.