Zenith Bank has raised $107.4 million through the issuance of Eurobond. This is expected to help the lender to mitigate interest rate and currency conversion that could make borrowing costly.
The fund is the leftover of the $500 million Eurobond Notes issued on May 30, 2017, as the second tranche of Zenith Bank’s $1 billion Global Medium Term Note Program, the bank said in a statement released to the Nigerian Exchange Limited (NGX).
It was gathered that Zenith Bank had previously drawn $392.6 million from the Eurobond in September 2019, before coming back for the balance, which was due on May 30 this year.
Eurobond is one of the cheapest means through which companies borrow funds to finance projects such as expansion into new foreign markets.
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However, Zenith Bank did not state the reason for the fundraising in the statement.
The statement read: “Zenith Bank has announced the redemption of the balance of US$107.4million of its US$500million Eurobond Notes due May 30, 2022. This is a further demonstration of the Bank’s highly diversified and robust funding sources, and its impeccable pedigree and track records in treasury management.
“The Eurobond Notes were issued on May 30, 2017, as the second tranche of the Bank’s US$1billion Global Medium Term Note Program, with a 5-year tenor and coupon of 7.375%.
“In September 2019, the Bank had redeemed US$392.6million of the Notes through a Cash Tender Offer ahead of its maturity date of May 30, 2022.”