MTN invests N121.5 billion in treasury bills, bonds, foreign currency deposits

Nigeria’s largest telecommunications company, MTN Nigeria has invested a whopping N121.5 billion in bonds, treasury bills and foreign currency deposits in 2020.
This compares to just N9 billion in 2019 suggesting the GSM giant had challenges deploying the capital raised during the year.
MTN raised N143.96 billion in several syndicated facilities during the year which was to be utilized for its network expansion plans.
However, the Covid-19 induced lockdowns affected capex activities forcing most companies to freeze spending on anything that is capital intensive. Effective Interest Rates for most of the loans obtained by MTN range between 3.5% and N5.8% per annum.
From the breakdown, MTN invested N93 billion in naira denominated fixed deposits, equivalent of N19 billion in US dollar deposits and another N34.8 billion in treasury bills. The total amount invested earned MTN about N15.84 billion in income which it used to offset its finance cost of over N129 billion.

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