28. June 2013 10:44
Diamond Bank Plc said it expects to launch its proposed $550 million bond next month and hopes for a 10-year maturity.
The bank said that its roadshow ended without a deal yet.
Reuters quoted the bank’s Chief Finance Officer, Mr. Abdulrahman Yinusa to have revealed that the bank ended a two-week investor roadshow to Britain, Switzerland and the United States last week, which was meant to update fund managers on the bank and gauge appetite for the issue,
Yinusa said: "The issue as well as the pricing will happen some time in July. We have only done the roadshow," adding that the bank wanted to raise a maximum of $550 million.
Several emerging market borrowers, including Nigeria itself, have held roadshows in recent weeks, but the US Federal Reserve's talk of winding down its money-pumping programme has kept new issues to a minimum.
Yinusa said the bank had met Goldman Sachs and Fidelity fund managers, among other investors during the roadshow. The roadshow was arranged by lead managers for the bond, France's BNP Paribas and Afrexim Bank.
A banking source said two weeks ago that Diamond Bank wanted to issue the bond at a yield of 6-8 percent, mirroring the seven percent yield that rival lender Fidelity Bank had fetched on its $300 million Eurobond issue in May.
Depending on the pricing and tenor, Diamond could settle for an amount between $300 million and $550 million, Yinusa said, noting that it will issue a minimum maturity of seven-year in order for the bond to qualify as Tier II capital on its books.
In an investors' presentation prepared for the bond seen by Reuters, it said the proposed 10-year bond will be callable after five years and will be listed on the Irish Stock Exchange
Source: Thisday Live