By Dipo Olowookere
The $500 million Eurobond notes sold to investors in 2017 by a leading Nigerian lender, Zenith Bank Plc, have now been fully redeemed.
This was confirmed in a statement issued by the financial institution on Tuesday and signed by its general counsel, Mr Michael Otu.
In the notice filed to the Nigerian Exchange (NGX) Limited, the bank said it paid holders of the debt instrument the balance of $107.4 million after the initial payment of $392.6 million about three years ago.
Recall that in September 2019, Zenith Bank announced that it was redeeming the Eurobond through a cash tender offer ahead of maturity.
It was gathered that not all the bondholders received the payment as only those who heeded the call were paid.
On Monday, the bond fully matured and the lender paid off the investors at maturity, demonstrating its impeccable pedigree and track records in treasury management.
On May 30, 2017, Zenith Bank, which is Nigeria’s largest and Africa’s 12th largest bank by Tier-1 capital, according to the Banker Top 1000 World Banks 2021 Ranking, issued the $500 million notes with a 5-year tenor and coupon of 7.375 per cent to investors.
It was the second tranche of the financial institution’s $1 billion global medium-term note program.
In the disclosure yesterday, the bank said the redemption of the balance of $107.4 million shows its “highly diversified, robust funding sources…, market leadership, growth capacity, a solid and liquid capital base, good returns on investment and excellent customer service.”
“Over the years, the bank has maintained a deep understanding of the market and its operating environment to sustain excellent results, an indication of the bank’s robust enterprise risk management framework and strong corporate governance,” it added.
