Wednesday, 27 March 2013

Zenith hits new Nigerian banking peak with London Stock Exchange listing

Zenith Bank, one of Nigeria’s largest banks, has officially listed on The London Stock Exchange.
The bank, which was listed on the Nigerian Stock Exchange in 2004, has subsidiaries in the UK, Ghana, Sierra Leone, The Gambia and representative offices in South Africa and China.

With a customer base of over two million accounts at 366 branches and total assets of $27bn, it is the biggest Nigerian bank in terms of Tier 1 capital and shareholders' funds.
Mr Godwin Emefiele, managing director and chief executive officer of Zenith Bank, said: “We are delighted with the success of our inaugural GDR listing.

“This is one of the first Nigerian bank GDRs to be listed on the main board of the London Stock Exchange, and the transaction generated substantial interest from top tier investors in Europe and is a testament to the support for the Zenith Bank business model worldwide.”

The move gives the bank access to a wide range of major institutional investors and significantly raises its international profile. The company’s market capitalisation at listing was $4.24bn.

J.P. Morgan acted as global coordinator and sole bookrunner on this transaction with Vetiva Capital management as the financial advisor to the company.

Ibukun Adebayo, head of primary markets, Africa at London Stock Exchange, said: “Zenith Bank’s listing highlights London’s leading role in supporting Nigeria’s burgeoning financial sector.

“Three major Nigerian banks have listed in London demonstrating UK and international investors’ appetite for exposure to this fast growing and increasingly diverse economy.”

Zenith Bank is the third Nigerian Bank to list GDRs in London following Guaranty Trust Bank and Diamond Bank.

Zenith’s listing means that the two largest Nigerian banks by market capitalisation are now listed in London. The company joins a vibrant community of 58 emerging market banks listed in London, valued collectively at just under $75bn.

The listing also gives Zenith access to the deepest international pool of capital in the world, currently holding more than $1.8 trillion in international equity assets. It joins five other companies on London Stock Exchange’s markets that have major operations in Nigeria.

London Stock Exchange is the largest international stock exchange for African companies. Since 2008, Africa-focused companies listed on London Stock Exchange have raised over £4.2bn in new and further issues, while 97 sub-Sahara African focused companies are listed on or admitted to London Stock Exchange Markets.

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