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Banks To Resume Dollar Loans As Naira Appreciates by ijebuloaded(m): 12:57pm On Jun 18, 2017
Signs have developed that Deposit Money Banks will soon begin to raise dollar-denominated loans, particularly Eurobonds, as the naira keeps on increasing in value.

It was learned that banks were currently positively arranged to raise dollar loans taking after the making of the Investor and Exporters FX window by the Central Bank of Nigeria and the subsequent appreciation of the naira.

Another reason the banks are thinking about Eurobonds, according to top banking sources, is on the grounds that some of them are taking a look at re-negotiating 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 incompletely to re-negotiate their Eurobonds falling due, or to exploit the gratefulness in the naira value to raise dollar funding."

While Guaranty Trust Bank Plc's $400m Eurobond is expected in November, Fidelity Bank Plc's $300m is expected next May. Access Bank Plc has $350m of bonds due in July.

GTBank has said it has no arrangements to issue new Eurobonds, yet Fidelity Bank and Access Bank presently can't seem to choose.

Monetary and financial expert concur that the banks will begin to raise dollar-denominated loans.

All things being equal, more banks will issue Eurobonds in light of the fact that they require dollars to offer advances in the United States cash or to repay debt, an investigator at Vetiva Capital Management Limited, Mr. Lekan Olabode, told Bloomberg, including that more banks would issue Eurobonds, in light of the fact that they required dollars to offer loans and to repay debt.

As of now, Ecobank Transnational Incorporated has said it is wanting to raise $400m five-year convertible security this month to renegotiate debt and provide short-term bridge funding to non-performing loans at its Nigerian unit.

Experts trust more banks will raise dollar credits this year and next year.

Officially, United Bank for Africa Plc has brought $500m up in its first Eurobond deal.

It issued the bond on June 1. This took a comparable issue seven days prior by Zenith Bank Plc in an arrangement that was four times oversubscribed.

It is hard on putting a figure to what the normal dollar loans will be yet analyst trust that as the I and E FX window keeps on enhancing, more banks will exploit to raise additional dollar loans.

The CBN on Thursday said its currency window for investors had dealt with $2.2bn of exchange a month and a half.

It likewise said it represented just about 30 percent of the $2.2bn exchanges, adding this was intended to keep the window working.

The CBN had around 6 weeks back made the Investors and Exporters FX Window to attract foreign investors and at the same time maintain a strong currency to ward off inflation.

Experts have praised the activity as a stage in the correct direction.

In any case, some few experts, including a former Governor of the CBN, Prof. Charles Soludo, said despite the fact that the activity, among others taken by the controller lately, had propelled the forex showcase by 10 stages, there was a need to find a way to get the economy to where it should be.

Source : http://ijebuloaded.com/news-banks-resume-dollar-loans-naira-appreciates/

3 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by Nobody: 10:04pm On Jun 18, 2017
But where is lalasticlala sef

3 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by eleojo23: 10:42pm On Jun 18, 2017
When will banks start allowing us to use our Cards for online transactions without restrictions and at affordable rates?

62 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by k4kings(m): 10:42pm On Jun 18, 2017
K
Re: Banks To Resume Dollar Loans As Naira Appreciates by Viergeachar: 10:42pm On Jun 18, 2017
Alright
Re: Banks To Resume Dollar Loans As Naira Appreciates by awonwerey: 10:43pm On Jun 18, 2017
Na 2day we begin hear dat wan grin

1 Like

Re: Banks To Resume Dollar Loans As Naira Appreciates by Flexherbal(m): 10:43pm On Jun 18, 2017
Good news!

2 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by auntysimbiat(f): 10:43pm On Jun 18, 2017
Ok
Re: Banks To Resume Dollar Loans As Naira Appreciates by jjjjj2017: 10:43pm On Jun 18, 2017
not until $1= NGN1

11 Likes 1 Share

Re: Banks To Resume Dollar Loans As Naira Appreciates by MasterRahl(m): 10:43pm On Jun 18, 2017
I see shocked
Re: Banks To Resume Dollar Loans As Naira Appreciates by Sisqoman(m): 10:44pm On Jun 18, 2017
Sebi nah who don bellefull go collect loan.
Re: Banks To Resume Dollar Loans As Naira Appreciates by sampark201: 10:45pm On Jun 18, 2017
How does this make a paint rubber of Garri N350 as it was before?? i am not understanding

6 Likes 1 Share

Re: Banks To Resume Dollar Loans As Naira Appreciates by GavelSlam: 10:45pm On Jun 18, 2017
eleojo23:
When will banks start allowing us to use our Cards for online transactions without restrictions and at affordable rates?

When our export value increases significantly.

6 Likes 1 Share

Re: Banks To Resume Dollar Loans As Naira Appreciates by Philinho(m): 10:45pm On Jun 18, 2017
they've started again abi. let dollar be
Re: Banks To Resume Dollar Loans As Naira Appreciates by Kobicove(m): 10:46pm On Jun 18, 2017
Good news...I hope rogue bankers won't start round-tripping and make nonsense of this new development

3 Likes 1 Share

Re: Banks To Resume Dollar Loans As Naira Appreciates by LexngtonSteele: 10:46pm On Jun 18, 2017
Any improvement of the economy is good news...

I didn't understand this post, though grin

4 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by Addicted2Women: 10:46pm On Jun 18, 2017

My cousin who lives in London just told me about Buhari

My God, let this story not be true

I will break the news at the right time

9 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by nairaman66(m): 10:46pm On Jun 18, 2017
Miscreants of the system are at it again! In my own opinion I think the powers that be don't want the naira to appreciate! When it does, they introduce a new policy that will stagnant it. Why is Nigeria full of stupid and greedy leaders??

5 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by Tenim47(m): 10:47pm On Jun 18, 2017
story 4 the rich
Re: Banks To Resume Dollar Loans As Naira Appreciates by udenzino(m): 10:47pm On Jun 18, 2017
Babu and Co codinator, you people shud return naira to 170 per dollar... we dnt need the 1 naira per dollar again we're una promise us for una campaign... grin grin grin grin grin
Re: Banks To Resume Dollar Loans As Naira Appreciates by Aikayy: 10:47pm On Jun 18, 2017
Templerun95:
Evans tribe are stupid and pathetic
They will kidnap our dollar note now
People of chukwudubemuuuu angry
Evans is a Biafran like me. But unlike me, he is a criminal. AMA PROUD BIAFRAN! !

19 Likes 2 Shares

Re: Banks To Resume Dollar Loans As Naira Appreciates by omoadeleye(m): 10:47pm On Jun 18, 2017
Ok o
Re: Banks To Resume Dollar Loans As Naira Appreciates by supereagle(m): 10:49pm On Jun 18, 2017
We ordinary Nigerians need our card for online transactions at an affordable rate, I have a lot of professional things to get online.

3 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by Boss13: 10:50pm On Jun 18, 2017
I was expecting this. Banks with foreign denominated loans have no choice than to raise FX finance to pay their debts. I expect more Banks to rush to the Euromarket to raise funds. This might actually be a good time for them in view of the depressed yield in the Euromarket for Corporate Eurobonds. Yields should be between 7 - 8% at least.

This will further drive the naira up due to increase supply of FX

6 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by ChrisGnarly: 10:53pm On Jun 18, 2017
Ar u sure that thunder will nt fire APC?? Where is #1?? Let them just change d economy d way it was oo...
Re: Banks To Resume Dollar Loans As Naira Appreciates by Nymbols1(m): 10:55pm On Jun 18, 2017
Good news! depends on who you ask...
Re: Banks To Resume Dollar Loans As Naira Appreciates by abumeinben(m): 10:57pm On Jun 18, 2017
This damage Control is taking forever.
Re: Banks To Resume Dollar Loans As Naira Appreciates by ItalianWine(f): 10:58pm On Jun 18, 2017
ChrisGnarly:
Ar u sure that thunder will nt fire APC?? Where is #1?? Let them just change d economy d way it was oo...



We are not sure if thunder would fire them until our currency dig grave grin grin

2 Likes

Re: Banks To Resume Dollar Loans As Naira Appreciates by Victornezzar: 11:03pm On Jun 18, 2017
Templerun95:
Evans tribe are stupid and pathetic
They will kidnap our dollar note now
People of chukwudubemuuuu angry
U can never become a troll
try in another way

8 Likes 1 Share

Re: Banks To Resume Dollar Loans As Naira Appreciates by chukzyfcbb: 11:03pm On Jun 18, 2017
Boss13:
I was expecting this. Banks with foreign denominated loans have no choice than to raise FX finance to pay their debts. I expect more Banks to rush to the Euromarket to raise funds. This might actually be a good time for them in view of the depressed yield in the Euromarket for Corporate Eurobonds. Yields should be between 7 - 8% at least.

This will further drive the naira up due to increase supply of FX
Yea right or also increase the already bad non performing loans crippling the bank sector if things go wrong in the long run.

Its a gamble that can either make or break them.
If there happens to be a default from any of the lenders who borrowed from the banks, and the naira depreciates at time of payout, it means grave risk to the bank.
Also, i believe most muticoys in Nigeria should be able to access foreign loans at a way lower rate, so why subscribe to the bank lending terms which I know would be shooting at say 15%?

2 Likes

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