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GTB completes Nigeria's first private EuroBond Issue.

Last Updated: 1/24/2007 9:09:21 PM

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Nigeria's Guarantee Trust Bank (GTB) plc completes Nigeria's first Eurobond issue worth $300 million.....

GTB Eurobond issue oversubscribed.
GTB Eurobond issue oversubscribed.

Nigeria's Guarantee Trust Bank (GTB) on Monday successfully placed Nigeria's first private Eurobond issue on the international capital markets. The $300 million issue was over-subscribed at $521 million. The term of the bond is for 5 years with a fixed coupon rate of 8.625 per cent and is the first from a sub-saharan compnay outside South Africa that has not been backed by guarantee from the government or an international development institution.

Eurobonds are bonds issued in a currency other than the issuer's home currency and outside the issuer's home country, in this case Nigeria. The GTB issue was managed by Standard Bank plc and Afrinvest (West Africa) Limited as the joint lead managers. The bonds were issues under US S rules (aimed at non-US investors) and will be listed in London.

The Managing Director of GTB, Tayo Aderinokun speaking to Nigerian newspapers said "we are very excited about this development. We are opening a new avenue of funding for Nigerian institutions and not only GTBank".

The issue of the Bond without guarantee was made possible by GTB being assigned international credit ratings by Standard & Poor (S&P) and Fitch, both global rating agencies. S&P rated GTB as BB- while Fitch gave an B+ rating.

Analysts on the international capital markets expect a couple more Eurobond deals from Nigeria this year.


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