Call it a test of the bank’s strength and you might just be right. Zenith Bank Plc’s Eurobond 2022 was more than 300 per cent oversubscribed, raising $2.1 billion. The $500 million five-year senior unsecured benchmark bond (144A/REGS) was issued by the bank on the Irish Stock Exchange.
The bank’s Eurobond issue was successful on pricing, subscription level and global appeal. In terms of subscription level, the issue was the highest by any non-sovereign and non-supranational company in sub-Saharan Africa. The issue is in addition to the existing $500 million, which matures in April, 2019.
The bond was issued at par with both coupon rate and yield to maturity rate priced at 7.375 per cent, representing 50 basis points better than the sovereign of 7.875 per cent. The rating of both the sovereign and Zenith Bank is B+ with the bond issue also rated B/B+.
Financial experts said the 300 per cent 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.
Also, trading on the issue opened on profitable note. The bond opened trading at 101.15 per cent of par value on its first day of trading, highlighting the huge demand for the issue in the current market.
Sources said the subscription came from around the world such as Hong-Kong, China, Singapore, Europe and the United States of America. This confirmed the global acceptance of Zenith Bank as an international brand.
It was also learnt that 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.
Zenith Bank Plc established a $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 utilized for its general banking business.
The 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 lender is adjudged the largest bank in Nigeria by Tier-1 Capital, and has also earned recognition in other areas of operations which includes Best bank in Corporate Governance, Best Customer Service Bank in Nigeria and Most Customer-focused bank in Nigeria.
Its shares are freely traded on the London Stock Exchange following a listing of $850 million worth of shares by way of a Global Depository Receipt, GDR.
With operations in Nigeria, the United Kingdom, Ghana, Sierra Leone, Liberia, China and South Africa, Zenith Bank stands out in the banking industry through 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 per cent and the over-subscription of the Eurobond is a clear affirmation of the lender’s acceptance as a very strong global financial super-brand.