GTBank offers to repay $500mn Eurobond holders ahead of maturity

09 Feb 2016
Chibuike Oguh

Summary

GTBank said it would utilize its available dollar liquidity to repurchase the securities ahead of the scheduled maturity in May.

Segun Agbaje, Managing Director/CEO, Guaranty Trust Bank

Guaranty Trust Bank, one of Nigeria’s largest banks, has invited investors in its $500 million Eurobond to tender their securities for redemption, four months ahead of the debt’s maturity.

In a statement released last week, GTBank said holders of its Eurobond, due on May 2016 with a yield of 7.5 percent, can tender the notes for redemption from February 4th.

The move by GTBank is aimed at addressing concerns raised by investors, who have questioned the ability of the bank to redeem its Eurobond amid foreign currency shortages in Nigeria.

Nigerian banks have faced foreign exchange shortages since the Central Bank of Nigeria imposed strict controls last year to preserve the country’s foreign reserves amidst falling oil prices.

However, GTBank said it would utilize its available dollar liquidity to repurchase the securities ahead of the scheduled maturity in May.

“This liability management exercise allows the bank to efficiently manage its liquidity by addressing in full debt maturing in 2016,” the statement said.

GTBank also said it would maintain cash to repay any outstanding debt not tendered before the offer expires on February 11th.


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