By Sun News Publishing
Monday, July 30, 2007

This landmark, achieved on July 26, is coming on the heels of the bank’s successful $750 million offer for subscription of Global Depository Receipts (GDR), which closed a week earlier.

The offer was issued in the London market to raise about $500 million from international institutional investors outside Nigeria and about $250 million from individuals and institutional investors in Nigeria, according to a statement issued by the bank.

A Global Depositary Receipt (GDR), which is a negotiable dollar denominated bank certificate issued in international financial markets through a registered depository bank, represents ownership of certain equity securities that are issued and traded in a local market as well as ownership of a certain number of shares of a company. It can be listed/traded independently from the equity securities. GDRs are typically used by companies from emerging markets to raise capital and access investors in international markets.

Guaranty Trust Bank’s GDR offering is the first ever opportunity for Nigerians to make dollar denominated investments in the securities of a Nigerian company listed and traded on the London Stock Exchange. It opens up a previously unavailable large and global capital market to Nigerian investors considering that the London Stock Exchange is the primary market to many of the world’s largest companies; attracting some of the largest and most sophisticated investors in the world.
The dividends of the GDRs are paid in US dollars.

The bank, whose ordinary shares trade on the Nigerian Stock Exchange, had earlier filed an application to the United Kingdom Listing Authority for the admission of the GDRs to the Official List. Following the closure of the offer period, the GDRs have been admitted to trade under the symbol "GRTB" on the market for listed securities of the London Stock Exchange through its International Order Book.

The London Stock Exchange has, in its over 200 years of existence, remained the fulcrum of global stock exchanges with 350 highly reputable companies from over 50 countries trading on its markets. Its wealth of experience, integrity, expertise as well as knowledge of the market has propelled it into becoming one of the world’s foremost equity exchanges, ahead the famed New York and Tokyo Stock exchanges.

This landmark achievement reaffirms Guaranty Trust Bank’s desire to further strengthen its cross boarder presence and grow the confidence of international investors in the burgeoning Nigerian market. The bank already has a credible foot print in the international market with its highly successful $350 million Eurobond offer, which was the first of its kind by any Nigerian Institution.

The listing of Guaranty Trust Bank on the London Stock Exchange gives a positive commentary on the bank as one of Nigeria's most profitable and fastest growing banks, while lending credence to its AA- (double A minus) by Fitch and BB- (double B minus) by Standard & Poor’s, the best ratings assigned by the two international rating agencies to any Nigerian or West African-based bank.