Business Hilights
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Zenith Bank notifies NSE to revalidate $500m on second tranche for operations

Banking and stock market pundits have confirmed that the coast is very clear for leading money deposit bank, Zenith Bank Plc to raise up to $500 million under its global Medium Term Notes programme established in 2014 following last week’s official notice to the Nigerian Stock Exchange (NSE).

Business Hilights recalls that Zenith Bank had established a $1 billion global medium term note programme in 2014 and which was followed by immediate raising of $500 million under the first tranche of notes issued.

According to the notice signed by the Company Secretary, Mr. Michael Out, and sent to the NSE, Zenith Bank it intends to revalidate the raised $500 million under the second tranche of the programme.

The notice also revealed that the proceeds of the second tranche of the notes would be utilised for its general banking purposes.

The bank said “As was done in the first tranche notes, the bank intends to issue the second tranche notes directly but will retain the flexibility to issue through an offshore special purpose vehicle where market conditions require and allow same,” adding that just like the first notes that were listed on the Irish Stock Exchange (ISE), the second tranche would also be listed on the ISE.

Latest performance score sheet showed that the financial giant ended 2016 with a profit before tax (PBT) of N156.748 billion, which showed a significant jump above the N125.616 billion in 2015. Similarly, profit after tax rose from N105.531 billion to N129.65 billion.

During the last Annual General Meeting held in Lagos, Chairman of the bank, Mr. Jim Ovia, explained to shareholders that the bank was able to fully exploit the available opportunities to post the impressive results and noted that future outlook remains bright.