February 12, 2016

GT Bank releases final results for $500m Eurobond

Lagos – GT Bank Plc has announced the results of its cash tender offer for the 500 million dollars Eurobond at 7.50 per cent.

The bank made the announcement in a statement by the bank on Friday in Lagos.

The bank had on Feb. 4, opened an international tender offer for the bond.

It said that an aggregate principal amount of 126. 59 million dollars of the securities validly tendered on or prior to the expiration deadline and not validly withdrawn was accepted.

The statement said that the deadline for the tender offer was Feb. 10.

It added that no securities were tendered through the guaranteed delivery procedures described in the tender offer memorandum dated Feb. 4.

According to the bank, the settlement date for the tender offer is Feb. 16, 2016.

“The tender offer is consistent with its liability management strategy and reflected its ongoing efforts to enhance the efficiency of its funding and capital structure as it sought to reduce its overall funding costs,’’ it said.

It quoted Mr Segun Agbaje, the bank’s Managing Director, as saying that the offer was the first of its kind involving a Nigerian corporate in the international financial markets.

Agbaje said the offer would enable the bank to achieve the objective of reducing some “its borrowing costs ahead of the maturity of the Eurobond in May of this year’’.

“The tender result is also a testament to the strength of the bank’s credit in the international capital markets.

“It is gratifying and humbling at the same time to note this level of investor confidence in the bank,’’ the statement said.

NAN reports that JP Morgan and Morgan Stanley acted as the joint dealer managers for the offer, while Lucid Issuer Services Ltd acted as tender agent and information agent.