Diamond Bank issues $200m Eurobond

Diamond Bank Plc says it has completed the issuance of its inaugural $200m Eurobond which has a maturity of five years.

The bank said investors worldwide had indicated a warm acceptance of the debt during the road show with international fixed income investors.

A statement by the bank quoted the Group Managing Director/Chief Executive Officer, Dr. Alex Otti, as saying that the lender was pleased with the global acceptance of efforts aimed as repositioning the bank.

Otti said, 'The successful issuance of the Eurobond is yet another milestone in the growth trajectory of the bank. Three years ago, we embarked on the task of transforming Diamond Bank into a leading player in the Nigeria Banking industry and having moved four positions from the 11th largest bank in terms of total assets size to 6th, we are quite convinced that we are on the right path. The success of this Eurobonds issuance exercise has effectively launched Diamond Bank into the international market and we will continue to tap from this opportunity in a phased manner as the opportunities present themselves.'

The bank had recently announced its intention to meet with international fixed income investors on a road show with a target of raising between $200mn and $300mn.

The Chief Financial Officer of the Bank, Mr. Abdulrahman Yinusa, said,'The proceeds of the bonds will be used to fund growth of the business. With the remarkable growth we have recorded in the last three years, we have grown our loan book significantly, with a large portion of the loans extended to major players in the Oil and Gas, Telecommunications and Power sectors.'

He added, 'In addition, we will deploy some of the proceeds into funding our short tenured Trade Finance transactions, which is another area of strength for the Bank. Though we are currently the sixth largest bank in the country, we have consistently ranked among the top three in trade finance. This led us to receive the award of the Best Issuing Bank in sub-Saharan Africa by the International Finance Corporation, an arm of the World Bank earlier this year,'

Diamond Bank's recently issued Eurobonds have been rated 'B', by both Standard & Poor's and Fitch Ratings, riding on the enterprise rating of the bank by both rating agencies. Agency report