May 13, 2011
Guaranty Trust Bank Plc is planning to launch a $500 million five-year bond, with price talk at a yield of 7.75 percent, banking sources told Reuters yesterday.
Reuters listed JPMorgan and Morgan Stanley as Lead managers to the bond.
GTBank issued a $350 million bond in 2007, which matures in January 2012. The bond has a coupon of 8.5 percent and is yielding 4.8 percent.
Nigeria issued a $500 million debut Eurobond earlier this year. The 10-year bond is yielding 6.1 percent.
GTBank had made history in July 2007 at the London Stock Exchange (LSE) with the listing of its $750 million Global Depository Receipts (GDR), which was oversubscribed by 15 per cent.
Earlier in January 2007, its $350 million Regulation Eurobond, issued without the guarantee of either the Federal Government or any international financial institution was also oversubscribed.
The listing of the $750 million GDR was the first of its kind to be undertaken by any Nigerian bank. A third of the offer, amounting to US$250 million was offered to Nigerian investors while the balance of US$500 million was available to foreign institutional and individual investors.
The GDR is a negotiable equity security held and traded in international capital markets; it gives issuers exposure to the global market outside their home market.
The Nigerian tranche of the GDR offering was a unique vehicle aimed at providing Nigerian investors with the opportunity of purchasing a dollar-based international investment. Dividends on the GDR holdings was made in US dollars.
Menwhile, South Africa’s Standard Bank has expressed an interest in buying one of the nine Nigerian banks rescued by the Central Bank of Nigeria (CBN) last year, the head of Standard’s Nigerian unit said.
The rescued banks are Intercontinental Bank, Oceanic Bank Plc, FinBank Plc, Bank PHB Plc, Afribank Nigeria Plc, Equitorial Trust Bank, Union Bank of Nigeria Plc and Spring Bank Plc. Others, which have since recapitalised are Unity Bank Plc and Wema Bank Plc.
CBN had asked for potential bidders to register their interest in the troubled banks by mid-December to test the appetite for acquisitions as the regulator looks to reshape Nigeria’s banking landscape.
"I can confirm that we registered interest with the central bank to buy one of the Nigerian banks," said Chris Newson, chief executive officer of Stanbic IBTC, a subsidiary of Standard Bank.
"We think there is a more opportunity in Nigeria and so we are exploring either organic or acquisitive growth," he added.