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NSE lists GTBank’s N13bn bonds

By Michael Eboh
The Nigerian Stock Exchange (NSE), Wednesday, admitted to its Daily Official List, GTBank Plc’s N13.17 billion bonds, recently issued through a book building process.

According to a statement by Mr. Sola Oni, Assistant General Manager/Head, Corporate Communications Department, the bond which is the first tranche of the bank’s N200 billion Debt Issuance Programme has a five-year tenor with 13.5 percent Coupon and semi annual interest payment fixed for June 18 and December 18.

He said, “History was made today as the 13.5 per cent Fixed Rate Senior Unsecured Non-Convertible Bond of GTBank Plc, valued at N13.165 billion  issued through a Book Building process was listed on The Nigerian Stock Exchange. This is the first bond to be listed through this process.

“Book Building is a capital raising process that aids price and demand discovery.  It is a process used for marketing a public offer of securities.
“The issue is to enable GTBank access long-term capital to finance medium-to-long term projects, particularly developmental and infrastructural projects in the key sectors of the economy.

He stated that the NSE’s Automated Trading System (ATS) and Central Securities Clearing System (CSCS) Limited are prepared to provide seamless trading, settlement and delivery on the bond like other listed financial instruments.

“The NSE has also reduced the transaction charges in bond as part of the incentives to make investment in bonds very attractive.  Many companies are expected to take advantage of Book Building process to raise fund through the capital market.

“The process does not only reveal the demand and price investors are willing to pay, but is also highly cost-effective,” he said.

Meanwhile, African Petroleum Plc has announced a loss after tax of N5.48 billion in its third quarter 2009 financial performance compared to a profit after tax of N5.05 billion recorded in the comparable period of 2008.

It also recorded a loss after tax of N4.68 billion compared to a profit before tax of N3.19 billion recorded in 2008.
This was in spite of a 3.49 per cent increase in its turnover, from N112.96 billion in 2008 to N118.67 billion.

The company also posted a loss after tax of N4.68 billion and N5.56 billion in its first and second quarter financial statements respectively.

Also, Pinnacle Point Group Plc notified the NSE that the controversy between it and ABSA Bank Limited, South Africa had been resolved.

According to the notice released by the NSE to market operators, the company stated that it had successfully implemented the underwriting agreement it entered into with ABSA Bank Limited, thereby confirming that its outstanding loans with ABSA have been capitalised and that the R95 million cash payable in terms of its rights offer had been received by the Group.

The company noted that with the resolution of the conflict, it can now focus on its core business, which is the Lagos keys development and deliver value to its investors.

The value of listed equities on the Nigerian Stock Exchange (NSE) appreciated, Wednesday, by N13.71 billion.
In particular, the market capitalisation, representing, the value of listed equities, rose by 0.23 per cent to close at N5.921 trillion from N5.907 trillion at which it opened. The All-share index garnered 56.73 basis points to close at 24,504.58 points from 24,447.85 points.

Mobil Oil Nigeria Plc recorded the most share price gain, rising by N5.11 to close at N107.64 per share, Benue Cement Company Plc followed with a gain of N3.23 to close at N68.01 per share and Flour Mills Nigeria Plc garnered N1.38 to close at N52.10 per share.

On the contrary, Glaxo SmithKline Consumer Plc recorded the most share price loss, dropping by N1.49 to close at N28.48 per share, Unilever Nigeria Plc followed with a loss of N1.03 to close at N25.20 per share and UAC Property Development Company Plc dipped by N0.96 to close at N20.04 per share.


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