Ralph Mupita
MTN GROUP has made payment for US$300 million in early Eurobonds settlement.
The payment of the debt, which had a maturity date of 2024, follows the strong first half 2022 results.
It also brings MTN’s dollar-denominated debt down to 35% of total holding company (Holdco) debt on a H1 2022 proforma basis.
In late August, MTN invited eligible holders of the US$750 million Eurobond – due to mature in November 2024 – to tender their notes for purchase by the company for cash.
The offer attracted tenders of more than US$482 million. This was significantly more than the US$250 million originally intended for early settlement.
As a result, MTN raised the final acceptance amount to US$300 million, which was settled on 6 September, 2022.
“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 President and Chief Executive Officer, Ralph Mupita.
“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 Holdco leverage below 1.5x.”
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 Holdco 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,” she said.
At end-December 2021, the Holdco 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 our operating companies (including R4.5 billion from MTN Nigeria)
BY Jamila Akweley Okertchiri