One of Nigeria’s respected financial institutions, First Bank, is reportedly set to raise fresh capital through the issuance of a new Tier-2 subordinated Eurobond.
According to media reports, the bond will kick off the road show on Thursday in London, preparatory to the issuance of the dollar-denominated instrument.
First Bank plans to raise between $300 and $500 million from the Eurobond market, THISDAY reported.
The bond which is expected to raise the bank’s capital base is likely to be managed by Goldman Sachs and Citigroup that managed the $300 million Tier-2 Eurobond which First Bank issued in August last year, THISDAY added.
The proposed issuance of the Eurobond by First Bank is in line with the trend by Nigerian banks to raise dollar funding from the international capital market.
Access Bank had in June also issued a $400 million Tier-2 subordinated Eurobond while Zenith Bank Plc issued a $500 million senior Eurobond in April.
Both issues, which were also managed by Goldman Sachs and Citigroup, were highly successful and oversubscribed. Analysts expect the prospective First Bank issue to also do well, given the appetite of investors for issuances from leading Nigerian institutions.
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This article was first published on 7th July 2014
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One of Nigeria’s respected financial institutions, First Bank, is reportedly set to raise fresh capital through the issuance of a new Tier-2 subordinated Eurobond.
According to media reports, the bond will kick off the road show on Thursday in London, preparatory to the issuance of the dollar-denominated instrument.
First Bank plans to raise between $300 and $500 million from the Eurobond market, THISDAY reported.
The bond which is expected to raise the bank’s capital base is likely to be managed by Goldman Sachs and Citigroup that managed the $300 million Tier-2 Eurobond which First Bank issued in August last year, THISDAY added.
The proposed issuance of the Eurobond by First Bank is in line with the trend by Nigerian banks to raise dollar funding from the international capital market.
Access Bank had in June also issued a $400 million Tier-2 subordinated Eurobond while Zenith Bank Plc issued a $500 million senior Eurobond in April.
Both issues, which were also managed by Goldman Sachs and Citigroup, were highly successful and oversubscribed. Analysts expect the prospective First Bank issue to also do well, given the appetite of investors for issuances from leading Nigerian institutions.
