First Bank’s $450m Eurobond raises sector’s total to $1.5bn

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First Bank of Nigeria Limited has issued a $450 million tier-2 Eurobond increasing amount of funds raised by Nigerian Eurobond market this year to $1.55 billion.
Nigerian ; Zenith ($500 million), Diamond ($200 million) and Access ($400 million), had raised a of $1.1 billion dollar-denominated debt market in first half of year.
The debt instrument, which has a seven-year tenure and call option after five years, is expected to continue to extend the tenure of First Bank’s dollar funding profile and support the bank’s continued lending to the corporate sector. It will also raise the bank’s capital base.
First Bank issued a similar $300 million Eurobond in 2013.
Analysts that the increase in both direct investments and portfolio flows, are tapping Eurobonds to bolster capital bases and also to finance big-ticket deals in the oil and and the newly privatised power sector.
The MD/CEO of Citibank Nigeria, Mr Omar Hafeez told Thisday Newspaper that the challenge in -eastern part of Nigeria has not deterred investors buying debt instruments issued by Nigerian banks.
“The investment community is very well informed. Nigeria is a loan market and financial investors have been tapping into treasury bills and bonds for a very long ,” the paper quotes Hafeez is quoted as saying.  (VENTURES )