Download Listing of GTB lift value of corporate bond by 145

Listing of GTB lift value of corporate bond by 145.2 per cent
Less than one month after the Nigerian Stock Exchange (NSE)
admitted the listing of Guaranty Trust Bank (GTB) unsecured nonconvertible bond to the daily official list, the value of corporate bond
has increased by 145.2 per cent.
GTB plc made history on March 17, 2010 when 13,165,000 unit of its
fixed rate senior unsecured non-convertible Bond valued at N13.165
billion and issued through a Book Building process was listed on the
Nigerian Stock Exchange (NSE). This is the first bond to be listed
through this process.
Book Building is a capital raising process that aids price and demand
discovery. It is a process used for marketing a public offer of
securities. The issue is to enable the GT Bank access long-term capital
to finance medium-to-long term projects, particularly developmental
and infrastructural projects in the key sectors of the economy.
According to information obtained from the NSE, the Niger State subnational bond issued within the period has also increased in value by
7.02 per cent.
The two bonds were admitted on the daily official list on March 17,
2010. The 13,165,000 units of fixed rate senior unsecured nonconvertible bonds 2014 (Series 1) in favour of Guaranty Trust Bank
(GTB)Plc and the 6, 000,000 unit fixed rate redeemable development
bond 2009/2014 in favour of Niger State Government were admitted
at a price of N1,000 each.
The
NSE'S
Assistant
General
Manager/Head
Corporate
Communications Department, Sola Oni, explained, recently, that the
GTB bond, which is the first tranche of the bank's N200 billion Debt
Issuance Programme has a five-year tenor with 13.5 percent Coupon,
and semi annual interest payment fixed for June 18 and December 18.
Officials of The
Nigerian Stock Exchange said The
Exchange's
Automated Trading System (ATS) and Central Securities Clearing
System (CSCS) Limited stand to provide seamless trading, settlement
and delivery on the bond like other listed financial instruments.
The Exchange has also reduced the transaction charges in bond as
part of the incentives to make investment in bonds very attractive.
Many companies are expected to take advantage of Book Building
process to raise fund through the capital market. The process does not
only reveal the demand and price investors are willing to pay, but is
also "highly cost-effective".
GUARDIAN April 9, 2010