Signs have risen that Deposit Money Banks will soon begin to raise dollar-named loans, particularly Eurobonds, as the naira keeps on increasing in value.
It was learnt that banks were currently positively arranged to raising dollar credits taking after the making of the Investor and Exporters FX window by the Central Bank of Nigeria and the consequent valuation for the naira.
Another reason the banks are thinking about Eurobonds, as per top managing an account sources, is on the grounds that some of them are taking a look at renegotiating their dollar loans, which will soon begin falling due.
The top bank official stated, “Many banks must choose between limited options than to raise dollar loans or Eurobonds somewhat to renegotiate their Eurobonds falling due, or to exploit the rise in the naira incentive to raise dollar subsidizing.”
While Guaranty Trust Bank Plc’s $400m Eurobond is expected in November, Fidelity Bank Plc’s $300m is expected next May. Another Bank has $350m of bonds due in July.
GTBank has said it has no arrangements to issue crisp Eurobonds, yet Fidelity Bank and Access Bank presently can’t seem to choose.
Monetary and money related specialists concur that the banks will begin to raise dollar-named credits.