• Tuesday, December 05, 2023
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Diamond Bank asks BNP Paribas, Afrexim Bank to market $550m bond


Diamond Bank plc has asked France’s BNP Paribas and Afrexim Bank to lead an investor road show to Europe, the U.S. 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.