Nigeria’s second largest lender, Zenith Bank has seen its USD500 million Eurobond receiving a huge rally as investors subscribed to the Eurobond by over 400%.
About USD1.2 billion was placed as bid. Zenith Bank already did the tranche of the borrowing programme which is billed to be redeemed next year.
It would be recalled that Zenith Bank issued its intention to raise the second tranche. The note will be listed on the London Stock Exchange, where USD850 million worth of its shares. The bank said it will use the notes for general lending purposes.
Fitch Ratings said it has assigned ‘B+(EXP)’ rating to the planned debt programme.
Fitch said the Recovery Rating is ‘RR4’, which denotes average recovery prospects in the event of default. The notes will be issued under Zenith’s updated USD1 billion global medium-term note (GMTN) programme.
The ratings agency said the assignment of the final rating is contingent on (sic) the receipt of final documents conforming to the information received to date.
