Post Views: 637 Zenith Bank Plc, on Thursday hinted the Nigerian Stock Exchange (NSE) that it would issue the second tranche of its $1bn Global Medium...
Zenith Bank Plc, on Thursday hinted the Nigerian Stock Exchange (NSE) that it would issue the second tranche of its $1bn Global Medium Term Note Programme, established in 2014, when it raised half the amount under that tranche.
In its letter to the NSE, the bank said it would use the net proceeds of the second tranche from where it may be converted into Naira or retained in foreign currency, would be paid into a domiciliary account, for “general banking purposes.”
The bank, in the letter titled Notification of the propose revalidation/update to the US$1bn Global Term Note Programme established by Zenith bank Plc and the issuance of a second tranche of notes under the programme, said it has no plan to obtain a Certificate of Capital Importation (CCI) in respect of the portion not converted into Naira, while it intends to make principal repayment and interest payments n the Notes from its foreign currency reserves, since it would not be able to obtain access to the nation’s forex market for the purpose of making such payments.
“However, in the event that the bank does not have sufficient foreign currency reserves to meet the principal and interest payments due on the notes,” the statement said it would be required to obtain approval of the Central Bank of Nigeria to access the official forex market.
explained among others, that the second tranche, like the first would be listed on the Irish Stock Exchange and admitted to trading on its regulated market, just as the bank intends to issue the second directly while retaining “the flexibility to issue through an offshore special purpose vehicle where market conditions require and allow for same.”
The statement by Michael Osilama Otu, the Company Secretary also hinted about investor meetings regarding the transaction in Europe and the United States.