GTB guides to 6.25% but illiquid 2016s make new issue premium hard to gauge
Guaranty Trust Bank, the Nigerian lender, has released price guidance of 6.25% area for a five year bond, but syndicate officials away from the deal said it is difficult to tell whether the deal is generous as the only other existing point on GTB’s curve is short dated and illiquid.
JP Morgan and Morgan Stanley are arranging the deal, which is expected to be rated BB- by Standard & Poor’s and B+ by Fitch.
“The level of the outstanding 2016s is so unstable because they’re illiquid and short dated that you can argue that guidance is between 25bp
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