Zenith Bank Plc has recorded a 200 per cent over-subscription of its $500m Eurobond issue announced on April 1, 2014.
The $500m Eurobond is under a $1bn Global Medium Term Note programme.
The bank’s weeklong investors’ roadshow, coordinated by Goldman Sachs and Citibank, received an overwhelming endorsement by a diversified group of global investors from Europe, the United States, Africa, Asia and the Middle East, Zenith said in a statement.
According to the statement, investor’s perception of Zenith’s domestic market leadership and its strong balance sheet defined by its liquidity, asset quality and capital adequacy are among the major factors driving the overwhelming acceptance of the bank’s first ever debt issue.
The bank stressed that it remained innovative but prudent and customer-service focused.
This, the bank, said elicited investors’ appetite for its shares currently trading on both the Nigerian Stock Exchange and the London Stock Exchange (through a GDR programme).
Also, the bank said its conservative approach to banking had been exemplified by its robust capital adequacy ratio of 26 per cent as at December 31, 2013, strong liquidity ratio of 64 per cent, prudent loan to deposit ratio of 55 per cent and strong risk management culture.
Meanwhile, Zenith Bank said two leading rating agencies, Standard and Poor’s Ratings Services and Fitch Ratings, had rated both the programme and the first tranche of $500m issued as BB- and B+, respectively.
Standard and Poor’s Ratings Services had in its 2013 Issuer Rating of Zenith Bank noted that “the main constraint on Zenith’s Ratings is the Sovereign ratings of Nigeria…”
The GMTN programme gives Zenith the opportunity to raise up to $1bn out of which a first tranche of $500m has been issued.
This offer is priced at a coupon rate of 6.25 per cent payable every six months, the first $500m tranche has an effective date of April 22, 2014 and maturity date of April 22, 2019 and is 100 per cent redeemable on maturity.
