Africa’s largest telecoms group, MTN has settled US$300-million in Eurobonds that were due in 2024 early, helping to deleverage its balance sheet.

The early repayment brings MTN’s dollar-denominated debt down to 35% of total holding company debt (on a first-half 2022 proforma basis), the group said on Monday.

In late August, MTN invited eligible holders of the $750-million Eurobond – due to mature in November 2024 – to tender their notes for purchase by the company for cash.

MTN raised the final acceptance amount to $300-million, which will be settled on 6 September 2022

“The offer attracted tenders of more than $482-million, significantly more than the $250-million originally intended for early settlement,’ MTN said. “As a result, MTN raised the final acceptance amount to $300-million, which will be settled on 6 September 2022.”

Read also : Nigerian Fintech Startup Vella to Boost Borderless Money Transfers

“In line with our Ambition 2025 strategy, we are committed to deleveraging the balance sheet faster in line with our capital allocation framework,” said MTN Group CEO Ralph Mupita in a statement. “This week’s early settlement supports delivery of this commitment as well as of the execution and delivery of our medium-term guidance to maintain the holding company leverage below 1.5 times.” 

MTN Group chief financial officer Tsholofelo Molefe said that as the settlement would be funded from available cash balances, it did not affect the pro forma holding company leverage of 0.8x at 30 June 2022. “However, on a pro forma basis, the settlement improves the end-June 2022 ratio of non-rand-to-rand debt to 35:65 from the 42:58 ratio reported in the group’s interim results.”

Read also : Nigerians Fintech Company, PalmPay Makes Big User Milestone

At end-December 2021, the holding company leverage was 1.0x. The improvement in the first half of 2022 to 0.8x was boosted by the repatriation of R9.4-billion in cash from operating companies, including R4.5-billion from MTN Nigeria, the group said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry