MTN cuts dollar debt by settling $300m worth of bonds early

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Africa's largest mobile operator MTN has announced the early settlement of $300 million of its dollar-denominated bonds, part of a strategy to cuts its non-rand debt, which has now fallen to 35% of the group total.

In late August, MTN invited eligible holders of its $750 million eurobond due to mature in November 2024 to tender their notes for purchase by the company for cash.

The offer had attracted tenders of more than $482 million, higher than the $250 million maximum set by the mobile operator.

As a result, MTN raised the final acceptance amount to $300 million, which will be paid on 6 September. The payment will be funded from available cash balances, and will reduce the ratio of non-rand debt from 42% at the end of June.

MTN shares opened at R126.00 before dipping almost 1% R125.40