Economy

Zenith Bank redeems $500m Eurobond notes; China’s non-manufacturing PMI up in May

Zenith Bank redeems $500m Eurobond notes; China’s non-manufacturing PMI up in May
Written by Maritime First

Zenith Bank Plc says it has redeemed a balance of 107 million dollars of its 500 million dollar Eurobond Notes, due on May 30.

In a statement obtained from the Nigerian Exchange Ltd.,(NGX) and signed by Micheal Osilama Otu, Group Company Secretary/General Counsel, the bank said the redemption was a further demonstration of it’s highly diversified and robust funding sources.

According to the bank, it is also an impeccable pedigree and track record in treasury management.

The Eurobond Notes were issued on May 30, 2017, as the second tranche of the bank’s 1 billion dollars Global Medium Term Note Programme, with a 5-year tenor and coupon of 7.375 per cent.

In September 2019, the bank redeemed 392.6 million dollars of the notes through a cash tender offer ahead of its maturity date of May 30.

Zenith Bank in its unaudited results for the first quarter ended 31st March recorded a growth of 22 per cent in gross earnings from N157.3 billion reported in the first quarter of 2021 to N191.5 billion in second-quarter 2022.

Also in its unaudited statement of account presented to the Nigerian Exchange (NGX) on April 28, the strong double-digit growth in the topline culminated in an increase in the bottom line, as the Group recorded an 11 per cent Year-on-Year (YoY) increase in profit before tax, growing from  N61.02 billion in first-quarter 2021 to N67.99 billion in first-quarter 2022.

In the meantime, the Purchasing Managers’ Index (PMI) for China’s non-manufacturing sector increased to 47.8 in May, up from 41.9 in April, the National Bureau of Statistics (NBS) said Tuesday.

A reading above 50 indicates expansion, while a reading below it reflects contraction.

NBS senior statistician Zhao Qinghe said that the domestic COVID-19 infections had steadily declined in May, leading to the recovery of the service sector.

NBS data showed that the sub-index for the service sector stood at 47.1 in May, up from 40 in April.

Qinghe said that among the 21 sectors surveyed, industries including retail, railway and air transportation were in the expansion territory.

The new order index for the non-manufacturing sector stood at 44.1 in May, up from 37.4 in April, indicating rising demand in the market.

The construction sector had continued expansion, but the sub-index for the sector was down by 0.5 percentage points from April to 52.2 in May.

Confidence in the market has increased for most non-manufacturing firms, with the sub-index measuring business activity expectations rising two percentage points from April to 55.6 in May.

Tuesday’s data also showed that the PMI for the manufacturing sector came in at 49.6 in May, up from 47.4 in April.

The Purchasing Managers’ Index (PMI) for China’s non-manufacturing sector increased to 47.8 in May, up from 41.9 in April, the National Bureau of Statistics (NBS) said Tuesday.

A reading above 50 indicates expansion, while a reading below it reflects contraction.

NBS senior statistician Zhao Qinghe said that the domestic COVID-19 infections had steadily declined in May, leading to the recovery of the service sector.

NBS data showed that the sub-index for the service sector stood at 47.1 in May, up from 40 in April.

Qinghe said that among the 21 sectors surveyed, industries including retail, railway and air transportation were in the expansion territory.

The new order index for the non-manufacturing sector stood at 44.1 in May, up from 37.4 in April, indicating rising demand in the market.

The construction sector had continued expansion, but the sub-index for the sector was down by 0.5 percentage points from April to 52.2 in May.

Confidence in the market has increased for most non-manufacturing firms, with the sub-index measuring business activity expectations rising two percentage points from April to 55.6 in May.

Tuesday’s data also showed that the PMI for the manufacturing sector came in at 49.6 in May, up from 47.4 in April.

 

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Maritime First