MTN Group today, Monday, September 5, 2022 announced a further deleveraging of the balance sheet with the early settlement of US$300 million in eurobonds with a 2024 maturity date. This followed from the company’s strong first half 2022 results.

This brings MTN’s dollar-denominated debt down to 35% of total holding company (Holdco) debt on an 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 will be settled on Tuesday, September 6, 2022.

MTN Group Further Reduces Debt With Early Settlement Of $300m In Eurobonds With 2024 Maturity Date 5

“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 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 President and Chief Executive Officer , Ralph Mupita

Settlement will not affect the pro-forma Holdco leverage

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^th 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”.
Tsholofelo Molefe

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), MTN Group highlighted in a statement.

MTN Group Further Reduces Debt With Early Settlement Of $300m In Eurobonds With 2024 Maturity Date 6

Launched in 1994, MTN Group is a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to its customers. The company is inspired by its belief that everyone deserves the benefits of a modern connected life.

The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code ‘MTN’. The Group’s medium-term strategy is Ambition 2025: Leading digital solutions for Africa’s progress.