GTBank delays dividend payment to GDR holders

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Payment of dividends to holders of Guaranty Trust Bank’s global depository receipts has been delayed due to difficulties in sourcing dollars, the lender said on Tuesday.

The 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 Central Bank of Nigeria for dollars to make the payout.

Yet the central bank is struggling to make hard currency sales following a recent surge in demand, Reuters reported on Tuesday.

According to the report, with the price of oil, Nigeria’s main export, depressed and foreign exchange reserves dwindling, the CBN is hanging on to dollars to support the naira – leaving a shortage of hard currency supply for investors and importers.

GTBank, Nigeria’s top lender, was said to have 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 $750m. It paid out a total dividend of N2.80 per share in 2019.

Source: PUNCH

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