Guaranty Trust Bank Plc has floated a N200bn bond issue to enable it to raise long-term capital from institutional and high networth investors.
The order book for the offering of the five-year naira-denominated Fixed Rate Senior Unsecured Non-Convertible Bonds issued by the bank opened on Wednesday, and will close on December 16, 2009.
The bond, which is rated Aa- by Agusto and Co. Limited, represents the first tranche offering under the bank‘s N200bn Debt Issuance Programme approved by the shareholders of the bank in August 2009.
The programme and the bond issue have also received a ”no objection” of the Nigerian Securities and Exchange Commission and the Central Bank of Nigeria.
According to a statement from the bank on Wednesday, ‘‘The coupon rate and offer size of the bond issue will be determined upon completion of the book building process, which is being managed on behalf of the bank by GTB Asset Management Limited, FBN Capital Limited and WSTC Financial Services Limited, collectively issuing houses/book runners, and is solely targeted at institutional and high networth investors.
‘‘An application shall be made to the Council of the Nigerian Stock Exchange for the listing and admission of the bonds to the official list, upon the completion of the book building.
“Settlement and issue of the bonds are expected before the end of the year.‘‘ This offering, according to the statement, will enable the bank to significantly enhance its funding and lending capabilities, and it is the first naira-denominated bond issue by the bank.
In January 2007, the bank successfully issued $350m eurobond notes due on 2012, in the international capital markets without the guarantee of either the Federal Government or any international financial institution.
The placement agents include Radix Capital Partners, Ecobank Plc, First Bank of Nigeria Plc, Union Bank of Nigeria Plc, and Zenith Bank Plc, among others, while stockbrokers to the issue are GTB Securities, F&C Securities, Signet Investment and Securities, among others