MTN Raises $1 Billion in Bond Sale to Fund Capital Expenditure

JOHANNESBURG (Capital Markets in Africa) – MTN Group Ltd., Africa’s largest wireless carrier by sales, raised $1 billion through the sale of bonds to boost working capital and fund capital expenditure.

The Johannesburg-based company sold $500 million of February 2022 notes with a coupon of 5.373 percent and the same amount of October 2026 securities at 6.5 percent, MTN said in a statement on Thursday.

The company sought funds after reporting its first-ever half-year loss, partly caused by an agreement to settle a 330 billion-naira ($1.1 billion) fine with Nigerian regulators. MTN said last month that it had entered into three loan agreements with banks and financial institutions, raising more than $1.3 billion.