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GTB offloads $500m securities ahead of maturity

By Femi Adekoya and Helen Oji
05 February 2016   |   12:47 am
GUARANTY Trust Bank Plc, yesterday unveiled plans to offer to its investors, cash tender offer for its $500 million GTB Finance B.V. (Offeror) securities ahead of the May 2016 maturity date. The move, according to market watchers, may be a proactive measure to probably hedge against possible devaluation of the Naira, further scarcity of limited…
GTBank. Image source adesojiadegbulu

GTBank. Image source adesojiadegbulu

GUARANTY Trust Bank Plc, yesterday unveiled plans to offer to its investors, cash tender offer for its $500 million GTB Finance B.V. (Offeror) securities ahead of the May 2016 maturity date.

The move, according to market watchers, may be a proactive measure to probably hedge against possible devaluation of the Naira, further scarcity of limited foreign exchange and prepare its financial records for potential foreign investments as agreed at the bank’s recently held extra-ordinary general meeting.

Through the offer, the bank seeks to deploy its available dollar liquidity to the repurchase of the Securities ahead of the scheduled maturity in May.

According to the bank, holders of the securities are invited to tender any and all of their securities for purchase by the Offeror for cash on the terms of, and subject to the conditions contained in its tender offer memorandum.

In a document obtained by The Guardian, the bank noted that the liability management exercise allows the bank to efficiently manage its liquidity by addressing in full debt maturing in 2016.

“The extent to which this goal can be achieved through the offer will depend on the number of Securities that will be tendered in the offer, given the voluntary nature of the offer. The Bank intends to maintain cash available to repay any outstanding Securities not tendered in full at maturity.

“The offer commences on 4 February 2016 and will end at the Expiration Deadline. If the expiration deadline is extended by the Offeror, an announcement to that effect will be made by or on behalf of the Offeror by the means described in the tender offer memorandum not later than 9:00 a.m. (New York City time), the next business day after the previously scheduled expiration deadline.

“The results of the offer are expected to be announced on or about 11 February 2016. The Offeror will announce the aggregate principal amount of securities accepted for purchase. Such information will be notified to holders as described in the tender offer memorandum and shall, absent manifest error, be final and binding on the Offeror and the holders. Once the Offeror has announced the results of the Offer in accordance with applicable law, the Offeror’s acceptance of Tender Instructions in accordance with the terms of the offer will be irrevocable”, the document read.

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