The fixed-rate, US dollar-denominated bond, with a tenor of 5 years, carries a coupon rate of 7.125% and will be listed on...
Fitch Ratings has assigned
The notes are being issued by
The proceeds of the senior participation notes will be used by ENG for general-banking purposes, including providing the bank with stable medium-term funding.
The fixed-rate,
It is accompanied by an Issuer Rating of B- from
B' ratings by Fitch means the security has material default risk, but a limited margin of safety remains. It means financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.
At the peak of marketing the transaction, the issue was over three times oversubscribed, with significant interest from international investors.
The transaction opened with Initial Price Thoughts ('IPT's') of 7.75% and finally tightened to close at 7.125% on the back of robust demand. The strength and depth of the book demonstrated global investors' strong appetite for the
In a statement Thursday,
"This transaction is the first non-sovereign bond from
"This transaction followed a series of virtual global investor calls, with a number of blue-chip local, regional and international financial institutions, led by Citi, Mashreq,
Commenting on the issuance, Patrick Akinwuntan, Managing Director of
Mr. Akinwuntan continued, "I would like to extend my appreciation to our regulators, the
He further added: "We believe that our capital raising activities are key steps forward towards strengthening ENG beyond the regulatory ratios in addition to diversifying ENG's medium-term financing sources. ENG is poised for continued growth in the Nigerian financial services industry."
A senior note is a type of bond that is given priority over other debts should a company declares bankruptcy and is forced into liquidation. As a result of its lower degree of risk, senior notes pay lower rates of interest than junior bonds.
Senior notes may or may not be collateralized.
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