Zenith Bank to Redeem $500m Eurobond Sept 16

By Modupe Gbadeyanka

Tier-one Nigerian lender, Zenith Bank Plc, has announced its intention to buy back the $500 million Eurobond it issued to investors in 2017.

During the exercise, the five-year senior unsecured benchmark bond listed on the Irish Stock Exchange at a coupon rate of 7.375 percent recorded oversubscription of more than 300 percent.

Business Post reports that subscription for the Eurobond due in 2022 issue was $2.1 billion and recorded landmark success on three counts: pricing, subscription level and global appeal, with subscribers from Hong-Kong, China, Singapore, Europe and the United States of America.

On Wednesday, the financial institution called on holders of the debt instrument to tender them for purchase with the “accrued interest amount in accordance with the procedures described in the tender offer memorandum.”

According to the bank, subscribers have from Wednesday, September 4 till 5pm of Wednesday, September 11, 2019 to tender the bonds for cash.

Zenith Bank said on Thursday, September 12, 2019, it would announce results of the tender offering, while the guaranteed delivery deadline is 5pm New York City time on Friday, September 13, 2019, with the payment date fixed for Monday, September 16, 2019.

It was gathered that the decision of Zenith Bank to recall the Eurobond might be on the back of a strong Dollar liquidity in its buffers as well as fears of a possible devaluation of Naira by the Central Bank of Nigeria (CBN), which could raise its obligations in local currency.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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