- Home
- StockWorld
- GTB Completes First Tranche Five-Year Bond Issue
GTB Completes First Tranche Five-Year Bond Issue
- By John Uwe
- Published January 5th, 2010
- StockWorld
- Unrated
GUARANTY Trust Bank Plc has announced the completion of its first tranche of the five-year bond issue of N13.165 billion Fixed Rate Senior Unsecured Bonds due 2014.
The bonds, which were issued at par value, will have a coupon of 13.5 per cent per annum, at the cut-off price determined by the bank and the issuing houses/book runners upon the conclusion of the book building exercise.
Furthermore, the bank has filed an application with the Nigerian Stock Exchange for the listing and admission to trading of the Bonds.
Speaking at the completion board meeting of the bank in Lagos, Owelle Gilbert Chikelu the chairman of the bank, stated, “The bonds represent a unique opportunity to hold investment-grade fixed income securities with coupon payable on a semi-annual basis at an attractive yield relative to government bonds of comparable maturity.”
Similarly, Mr. Tayo Aderinokun, the bank’s managing director and chief executive, said, “Whilst there was strong demand during the book building exercise, the bank made a conscious decision not only to use a relatively moderate size transaction to discover the depth and potential of the Nigerian corporate bond market but also to arrive at a reasonable pricing benchmark for its naira-denominated debt especially in light of the two-year validity period of the Debt Issuance Programme.
“It is the bank’s intention to continue to access the market in the foreseeable future. Most importantly, the bank will apply the lessons learnt on this transaction in offering capital markets and advisory services to its corporate customers”, he added.
The offer is the first tranche under the bank’s N200 billion Debt Issuance Programme, through which the financial institution intends to raise debt from time to time, over a period of two years, in order to significantly enhance its funding/lending capabilities. The offering is also the first Naira-denominated bond issue by the Bank.
In January 2007, the bank successfully issued $350 million eurobond notes due 2012 in the international capital markets without the guarantee of either the federal government or any international financial institution.
The bonds, which were issued at par value, will have a coupon of 13.5 per cent per annum, at the cut-off price determined by the bank and the issuing houses/book runners upon the conclusion of the book building exercise.
Furthermore, the bank has filed an application with the Nigerian Stock Exchange for the listing and admission to trading of the Bonds.
Speaking at the completion board meeting of the bank in Lagos, Owelle Gilbert Chikelu the chairman of the bank, stated, “The bonds represent a unique opportunity to hold investment-grade fixed income securities with coupon payable on a semi-annual basis at an attractive yield relative to government bonds of comparable maturity.”
Similarly, Mr. Tayo Aderinokun, the bank’s managing director and chief executive, said, “Whilst there was strong demand during the book building exercise, the bank made a conscious decision not only to use a relatively moderate size transaction to discover the depth and potential of the Nigerian corporate bond market but also to arrive at a reasonable pricing benchmark for its naira-denominated debt especially in light of the two-year validity period of the Debt Issuance Programme.
“It is the bank’s intention to continue to access the market in the foreseeable future. Most importantly, the bank will apply the lessons learnt on this transaction in offering capital markets and advisory services to its corporate customers”, he added.
The offer is the first tranche under the bank’s N200 billion Debt Issuance Programme, through which the financial institution intends to raise debt from time to time, over a period of two years, in order to significantly enhance its funding/lending capabilities. The offering is also the first Naira-denominated bond issue by the Bank.
In January 2007, the bank successfully issued $350 million eurobond notes due 2012 in the international capital markets without the guarantee of either the federal government or any international financial institution.
