Zenith Bank has said that the fund raised from $ 500,000,000 under the second tranche of notes will be used for its general banking purposes. The bank also said that the net proceeds from the issue will be paid into the Bank ‘s foreign currency domiciliary account and may be converted into Maura or retained in foreign currency. Zenith Bank established $1000,000,000 global medium term Note programme in 2014 and hard subsequently raised $500,000,000 under the first tranche of Notes issued under the programme
. According the bank the first tranche notes has been listed and admitted to trading on the Irish Stock Exchange ( the ISE) and it is intended that the second tranche notes will also be listed and admitted to trading on its regulated market. The bank in a statement said “as we done with 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 required and allow for same.”
In further explanation it said ” the Bank does not intend to obtain a certificate of capital importation CCI) in respect of the proceeds of the notes that are not converted into Naira as CCI is only issued in respect of capital imported into Nigeria and converted into naira. Therefore the Bank will make principal repayment and interest payments on the notes from its foreign currency reserves as it will not be able to obtain access to Nigerian foreign market for the purpose of making such payments.” The bank however said, in the event that the bank does not have sufficient foreign currency reserves to meet the principal and interest due on the notes, the Bank would be required to obtain the approval of the Central Bank of Nigeria CBN to enable it to access the official foreign exchange market. The bank said the commencement of the transactions will however be subject to documentation and market condition
