First Bank Appoints Goldman Sachs, Citi, to Manage New $ 500 Million Eurobond Sale

First bank of Nigeria has disclosed that it will be floating a $ 500 million Eurobond sometime later this year. The bank’s Chief Financial Officer, Bayo Adelabu, said that the Eurobond will be floated in order to replace the $175 million Eurobond which it retired last year.

Goldman Sachs and Citibank have been appointed to advise the bank as well as to manage the sale of the bond.

First Bank recently posted superior earnings and a net income of N 44 billion in its 2011 audited financial statements. It has said it will utilize the money to finance its Africa expansion which includes the acquisition of a bank in a major West African country.

Mr. adelabu said First Bank had identified 10 countries in Africa where it would like to expand.

“What we are doing is to acquire one or two (per country) and see how much they can contribute to the group,” he said.

He also disclosed that the bank planned to increase its loan book by 10 percent this year after extending N 1.2 trillion in loans in 2011. He said the bank will realize 16% to 18% in Return on Equity this year.

The bank also plans to add 120 branches to the 630 it already has.