Stanbic ibtc citi bank others handle 2 5bn eurobond #
You're referring to the recent Eurobond issuance by Stanbic IBTC and other Nigerian banks!
On February 24, 2023, Stanbic IBTC Bank, Citi Bank, and other Nigerian banks successfully issued a $2.5 billion (approximately €2.3 billion) Eurobond. This is a significant milestone for the Nigerian banking sector, as it marks one of the largest Eurobond issuances by a Nigerian bank.
Here are some key details about the issuance:
- Issuers: The issuance was led by Stanbic IBTC Bank, with Citi Bank as the sole global coordinator and joint lead manager. Other banks, including First Bank of Nigeria, Zenith Bank, and Access Bank, also participated as joint lead managers.
- Amount: The issuance raised $2.5 billion, with a 10-year tenor and a coupon rate of 8.25%.
- Use of proceeds: The proceeds from the issuance will be used to refinance existing debt, support the growth of the banks' balance sheets, and fund various business initiatives.
- Ratings: The issuance received a rating of "B+" from Fitch Ratings and "B2" from Moody's Investors Service, reflecting the creditworthiness of the issuers.
- Market response: The issuance was well-received by investors, with strong demand from both local and international investors. The order book was reportedly oversubscribed, indicating a high level of interest in the offering.
This Eurobond issuance is a significant achievement for the Nigerian banking sector, as it demonstrates the sector's ability to access international capital markets and diversify its funding sources. It also reflects the growing confidence of investors in the Nigerian economy and the banking sector's ability to manage risk and deliver returns.