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Nigeria's GT Bank says dividends delayed to GDR holders

Published 18/08/2020, 14:49
Nigeria's GT Bank says dividends delayed to GDR holders
GTCO
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By Chijioke Ohuocha
ABUJA, Aug 18 (Reuters) - Payment of dividends to holders of
Nigeria's Guaranty Trust Bank (GT Bank) GUARANT.LG global
depository receipts (GDRs) GUARq.L has been delayed due to
difficulties in sourcing dollars, the lender said on Tuesday.
GT Bank said in a note to GDR holders that its registrar -
the company which maintains lists of bond and shareholders - was
in a queue with the Nigerian central bank for dollars to make
the payout.
Yet the central bank is struggling to make hard currency
sales following a recent surge in demand.
With the price of oil, Nigeria's main export, depressed and
foreign exchange reserves dwindling, its central bank is hanging
on to dollars to support the naira - leaving a shortage of hard
currency supply for investors and importers.
GT Bank, Nigeria's top lender, declined to comment on the
size of the dividend to be paid to holders of its GDRs, which
are traded in London. It issued the GDRs in 2007 to raise $750
million. It paid out a total dividend of 2.80 naira per share in
2019.

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