MTN Group settles $300 million Eurobonds ahead of 2024 maturity
MTN Group Limited has announced an early settlement for its $300 million Eurobond debt, thus cutting down its group dollar-denominated debt by 35%.
A statement seen by Business Insider Africa explained that the move is part of MTN Group’s commitment to deleveraging its balance sheet. The statement quoted Chief Executive Officer Ralph Mupita to have said:
“In line with our Ambition 2025 strategy, we are committed to deleveraging the balance sheet faster in line with our capital allocation framework. This week’s early settlement supports the 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.”
Note that the $300 million is part of MTN Group’s $750 million Eurobonds which is due to mature in November 2024. Last month, the telco invited holders who are interested in an early redemption to tender their notes.
The offer had attracted tenders of over $482 million, more than the $250 that MTN had originally intended for the early settlement. Given the significant interest, the company decided to increase the final acceptance amount to $300 million. The early settlement would now be finalised on Tuesday, September 6, 2022.
MTN’s Chief Financial Officer, Tsholofelo Molefe, said that the early settlement would be funded using available cash balances.
MTN Group is also buoyant with the cash proceeds from its recent divestment efforts.