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/

But where is lalasticlala sef

When will banks start allowing us to use our Cards for online transactions without restrictions and at affordable rates?

K

Alright

Na 2day we begin hear dat wan

Good news!

Ok

not until $1= NGN1

I see

Sebi nah who don bellefull go collect loan.

How does this make a paint rubber of Garri N350 as it was before?? i am not understanding

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.

they've started again abi. let dollar be

Good news...I hope rogue bankers won't start round-tripping and make nonsense of this new development

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??

story 4 the rich

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...

Templerun95:
Evans tribe are stupid and pathetic
They will kidnap our dollar note now
People of chukwudubemuuuu

Evans is a Biafran like me. But unlike me, he is a criminal. AMA PROUD BIAFRAN! !

Ok o

We ordinary Nigerians need our card for online transactions at an affordable rate, I have a lot of professional things to get online.

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

Ar u sure that thunder will nt fire APC?? Where is #1?? Let them just change d economy d way it was oo...

Good news! depends on who you ask...

This damage Control is taking forever.

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

Templerun95:
Evans tribe are stupid and pathetic
They will kidnap our dollar note now
People of chukwudubemuuuu

U can never become a troll
try in another way

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%?