South African mobile operator, the MTN Group, has reduced its debt further through early settlement of $300 million (R5.1bn) in euro bonds with a 2024 maturity date, it said yesterday, as part of efforts to deleverage its non-rand debt faster.
“This brings MTN’s dollar-denominated debt down to 35 percent of total holding company debt on a H1 2022 pro-forma basis,” the company said.
MTN Group finance chief Tsholofelo Molefe said the settlement would be funded from available cash balances.
“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 president and chief executive Ralph Mupita.
Last month the tech giant reported a 47 percent increase in profit for the six months to end-June.
The group flagged headline earnings per share of 567 cents, a 46.5 percent increase from 387c a year earlier.
MTN SA delivered a resilient performance against a backdrop of rising inflation and unemployment rates, interest rate hikes and currency volatility which placed even more pressure on consumers’ disposable incomes.
– Reuters and Staff Reporter