Zenith Bank’s Eurobond Four Times Oversubscribed

Hamilton Nwosa
Writer

Ad

How Obasanjo Got Angry at Me Over Diesel Deregulation – Otedola Opens Up

By Abiola Olawale Nigerian billionaire businessman, Mr Femi Otedola has shared a dramatic encounter with former President Olusegun Obasanjo over the 2004 diesel deregulation policy. This was detailed in his upcoming memoir, Making It Big: Lessons from a Life in Business, set for release on August 18, 2025, by FO Books. Otedola, then chairman of…

Trump-Putin Talks Put Oil Markets on Edge

The Trump-Putin meeting has become the main commodity market news of this week, with analysts speculating about the likelihood of a comprehensive deal and the impacts this could have on oil markets. ICE Brent has been gradually sliding closer to $65 per barrel as lower sanction risks on Russia could further erode the market’s in-built…

2027: PDP Warns Wike, Fayose: Endorse Tinubu, Risk Expulsion, Sanctions 

By Abiola Olawale The Peoples Democratic Party (PDP) has warned its members, including prominent figures like the Minister of Federal Capital Territory (FCT), Nyesom Wike, and former Ekiti State Governor, Ayo Fayose, against endorsing President Bola Ahmed Tinubu for re-election in 2027. The party’s National Working Committee (NWC) declared that such actions constitute anti-party activities…

Ad

  • Issue highest by any non-sovereign, non-supranational firm in SSA

 

The five-year senior unsecured benchmark $500 million Eurobond issued by Zenith Bank Plc on the Irish Stock Exchange has broken new grounds by being oversubscribed by more than 400%.

This is according to s statement issued by the bank’s management at the weekend. The issue was in addition to its existing $500 million Eurobond, which matures in April 2019.

Subscription to Zenith’s latest Eurobond 2022 issue was $2.1 billion and recorded landmark success on three counts: pricing, subscription and global appeal.

Available details of the issue showed that the subscription makes it the highest by any non-sovereign and non-supranational company in sub-Saharan Africa (SSA).

According to the statement, the bond was issued at par with both coupon rate and yield to maturity rate priced at 7.375%.

The 7.375% pricing is 50 basis points better than the sovereign (Nigeria’s Eurobond) of 7.875%. The rating of both the sovereign and Zenith Bank is B+ with the bond issue also rated B/B+.

“The 400% oversubscription indicates a huge endorsement of the Zenith brand as a reputable, international financial institution recognised for superior performance and creating premium value for all stakeholders,” said the bank’s management in the statement.

The bond opened trading at 101.15% of par value on its first day of trading, indicating the huge demand for the issue in the market.

Also, sources close to the issue said the subscription came from around the world, including Hong Kong, China, Singapore, Europe and the United States of America, to further affirm the global acceptance of Zenith Bank as an international brand.

Sources familiar with the details of the issue said over 200 investors participated, with the largest single ticket subscription being over $100 million.

They pointed at the overwhelming success of the issue as attesting to the visionary leadership of the institution and the consistent excellent track record of the bank over the last 26 years.

The bank established $1 billion Global Medium Term notes in 2014, with $500 million already raised in the first tranche. The first tranche notes were listed and admitted to trading on the Irish Stock Exchange in 2014.

The net proceeds of the Second Tranche Notes would be utilised for its general banking business.

Zenith Bank has consistently recorded good ratings from both local and international rating agencies. The ratings are supported by its leading market position in all key performance indices.

The bank is adjudged the largest bank in Nigeria by Tier-1 capital, and has also earned recognition in other areas of operations, including Best Bank in Corporate Governance, Best Customer Service Bank in Nigeria, and Most Customer-focused Bank in Nigeria.

Its shares are currently being traded freely on the London Stock Exchange (LSE), following a listing of $850 million worth of shares by way of GDR.

With operations in Nigeria, the United Kingdom, Ghana, Sierra Leone, Liberia, China and South Africa, Zenith stands out in the banking industry for its superior service quality, unique customer experience and sound financial indices.

In 2004 when the bank listed on the Nigerian Stock Exchange, its shares were oversubscribed by over 500% and the oversubscription of the Eurobond is a clear affirmation of the bank’s acceptance as a very strong international financial superbrand.

Ad

X whatsapp