MTN Group further reduces debt with early settlement of $300 million Eurobonds due 2024

Following strong results in the first half of 2022, MTN Group today announces continued balance sheet deleveraging with the early settlement of US$300 million in Eurobonds due 2024. This reduces MTN’s dollar-denominated debt to 35% of the total debt of the holding company (Holdco) on a pro forma basis for the first half of 2022.

In late August, MTN invited eligible holders of the US$750 million Eurobond – which will mature in November 2024 – to present their notes for purchase by the company in cash. The offering attracted bids of over US$482 million. This was significantly more than the US$250 million originally planned for early settlement. Accordingly, MTN has raised the final acceptance amount to US$300 million, which will be settled on Tuesday, September 6, 2022.

In line with our Ambition 2025 strategy, we are committed to deleveraging the balance sheet faster in line with our capital allocation framework,” said MTN Group Chairman and CEO Ralph Mupita. “This week’s early settlement supports the achievement of this commitment as well as the execution and delivery of our medium-term guidance to keep Holdco’s leverage below 1.5x.”

MTN Group Chief Financial Officer Tsholofelo Molefe said that as the settlement would be funded from available cash balances, it would not affect Holdco’s pro forma leverage of 0.8x as of June 30, 2022. “However, on a pro forma basis, the settlement improves the end-June 2022 ratio of non-rand debt to rand to 35:65 from the ratio of 42:58 reported in the Group’s interim results.

At the end of December 2021, Holdco’s leverage was 1.0x. The improvement in the first half of 2022 to 0.8x was driven by the repatriation of R9.4 billion in cash from our operating companies (including R4.5 billion from MTN Nigeria).

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