MTN Group, through its entity MTN (Mauritius) Investments Limited, has made significant strides in enhancing its balance sheet by reducing exposure to foreign exchange volatility. This move is part of the company's broader strategy to de-leverage its non-rand-denominated debt and maintain a robust financial position.
On Thursday, MTN announced that it had received valid tenders worth $353.1 million for its outstanding Eurobond Notes, which were part of a larger $750 million issuance set to mature on November 11, 2024. The early settlement of these tenders, which took place on Thursday, aligns with MTN's objective to manage its Holdco leverage ratio prudently.
The transaction has led to a notable improvement in the company's debt profile. Following the settlement, the ratio of non-rand to rand-denominated debt has shifted favorably from 37:63 to a more balanced 24:76. This strategic financial maneuvering has allowed MTN to maintain its pro-forma Holdco leverage at a stable 1.5 times post-settlement.
The successful tender offer and subsequent debt reduction underscore MTN's commitment to its capital allocation framework, which prioritizes balance sheet strength. By redeeming a significant portion of the outstanding $450 million Eurobond Notes, MTN has taken a proactive step toward mitigating risks associated with foreign exchange fluctuations.
J.P. Morgan Equities (SA) Proprietary Limited and Tamela Holdings Proprietary Limited sponsored the transaction, marking a collaborative effort to support MTN's financial strategy. With $96.9 million of the November 2024 expiry Eurobond Notes remaining post-settlement, MTN continues on its path toward achieving a more sustainable and resilient financial structure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.