Guaranty Trust Bank plc recently announced the redemption of the outstanding portion of the $500 million Eurobond Notes due May 19, 2016.
Early this year, the bank successfully issued a Cash Tender Offer repurchase and all the outstanding $500million 7.5per cent Eurobond Notes due May 2016 (the “Securities”) as part of its effective liability management strategy.
The tender was the first of its kind involving a Nigerian corporate in any capacity in the international capital markets and was well received by analysts and investors. The Securities were issued by GTB Finance B.V. (“GTB Finance”) – a direct, wholly owned subsidiary of the Bank – GTB Finance B.V. (the “Offeror”) – on the back of an unconditionally and irrevocably guarantee of the Bank.
At the expiration of the Tender Offer, an aggregate principal amount of $126,586,000 of the Securities were successfully and validly tendered.
Upon final maturity of the Eurobond in May 2016, the outstanding principal portion of $373,414,000 as well as the coupon value of $14,003,025 were redeemed using the bank’s available cash reserves.
Launched in May 2011, the $500 million Eurobond represented the first Sub-Saharan Africa financial sector benchmark Eurobond without a sovereign guarantee or credit enhancement from any international financial institution.
Over the years, the bank has continued to leverage on deep understanding of complex business scenarios to undertake large ticket transactions in financial advisory, structure and project finance, balance sheet restructuring, debt and equity transactions.
A few of the transactions successfully executed by the bank include; $350million Eurobond offering in January 2007, issuance of the Bank’s $824 million Global Depository Receipts in an unprecedented concurrent global offering in the domestic and international capital markets – which culminated in the listing of GTBank on the London Stock Exchange, the first Nigerian company and first Sub-Saharan African bank to be so listed-
In a statement, the Bank’s MD/CEO; Segun Agbaje, said, “Despite a difficult operating environment that characterized most of the year – especially when viewed against the backdrop of short dollar supply- the Bank continued the implementation of its effective liability management strategy with the successful completion of its any and all cash tender offer in February 2016 and subsequently, the redemption of the outstanding portion of the $500 million Eurobond Notes due May 19, 2016.”
GTBank has continued to report the best financial ratios in the industry with a return on equity (ROE) of 25.5per cent and a cost to income ratio of 44.4per cent evidencing the efficient management of the banks’ assets. At presently, the bank has one Eurobond issue currently outstanding: a $400 million six per cent bond placed in November 2013 with maturity in November 2018.