Nigeria Diamond Bank asks BNP to market $550mn bond

LAGOS: Nigeria's Diamond Bank has asked France's BNP Paribas and Afrexim Bank to lead an investor road show to Europe, the US and Asia for a Eurobond that could go up to $550 million, a banking source with knowledge of the deal said on Tuesday.

The amount the bank raises will depend on market conditions, the banker said, noting that the mid-tier lender was aiming for yield of between 6-8 percent. Pricing for the bond was expected next week, he said told Reuters.

Diamond Bank CFO Abdulrahman Yinusa told a Reuters Africa Investment Summit in Nigeria's commercial hub of Lagos in April that the bank would use funds from the debt issue to increase lending to the oil and gas, power and infrastructure sectors in Africa's second biggest economy.

Last month, rival lender Fidelity Bank issued a $300 million 5-year Eurobond paying a 7 percent yield.

Source: Reuters