After roughly a decade away from Eurobonds, MTN is checking in with global bond buyers while it balances a looming maturity and a big deal. People familiar with the matter say Absa Group, Bank of America, Citigroup and MUFG set up meetings with London-based fixed-income managers last week, and those people asked not to be named because the talks were private. A MUFG spokesperson declined to comment; Absa, Citigroup and Bank of America did not reply to requests for comment.
MTN told Bloomberg the sessions were a chance to brief bond investors after its August results, and added it has been updating equity investors too. According to people familiar with the situation, the gatherings were described as an investor-relations roadshow without an active offering, meant to prime the market should MTN decide to issue bonds later.
MTN has stayed out of international bond markets since 2016. Its remaining Eurobond matures in October with $500 million outstanding. In its latest results, the company said it has the resources to repay that note and is under no immediate pressure to tap the bond market to refinance it.
Simultaneously, the company faces multiple, competing calls on its cash. MTN, in February, announced a plan to acquire IHS Towers, the New York-listed tower operator with operations throughout Africa. MTN currently holds roughly 25% and aims to purchase the remainder for about $2.2 billion.
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On an Aug. 24 results call, management said they would raise debt to partially fund the transaction.
Listed in Johannesburg, MTN ranks as Africa's largest mobile carrier and serves nearly 320 million subscribers.
The near-term puzzle is simple: close out the $500 million maturity in October while lining up funding for the IHS buy. A non-deal roadshow today gives MTN the option to sell a new bond later if market windows and pricing cooperate. If you follow African credit or MTN specifically, watch for updates on the October repayment and any steps toward financing the towers acquisition, because those will set the tone for the company's cost of capital and execution timeline.
