First Bank to offer $500m Eurobond

FBN Holdings Plc, the parent company of First Bank Nigeria, plans to raise $500 million by selling a Eurobond this year after abandoning a similar offering last year.

The Chief Executive Officer, FBN Holding, Bello Maccido, said that the money was needed to finance investments in loans and infrastructure. He said, “The bank intends to expand its investment banking and commercial business as well as insurance.”

The bank last year suspended plans to issue the bond because of market conditions. Maccido, however, said, “We believe conditions will be favourable this year.”

The lender is joining other Nigerian banks in raising funding in dollars to help finance infrastructure projects in Africa’s top oil producer.

For instance, Fidelity Bank Plc sold a $300m five-year bond on May 2; Diamond Bank Plc is planning to raise as much as $750m this year, while Skye Bank Plc plans to raise $150m next quarter.