Nigeria: GTB raises $400m Eurobond

Guaranty Trust Bank (GTB) on 5 November launched a five-year $400m Eurobond, moving to take advantage of favourable global market conditions and its status as one of Nigeria’s most prominent issuers. The proceeds – less than the $500m initially advertised – are expected to be used to finance power sector projects, and potentially oil and gas and other infrastructure projects, as well as GTB’s expansion into sub-Sahara Africa.The bond’s yield was initially priced at 6.125%. GTB issued its first Eurobond in 2007, and has another outstanding $500m Eurobond due in 2016, which currently trades at 4.85% (the equivalent of a 431 basis points spread over US Treasuries).