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$200m Eurobond excites Diamond Bank

By on May 20, 2014

Diamond Bank Plc has expressed delight over the global acceptance that trailed its inaugural $200 million Eurobond last week.

Commenting on the successful completion of the road show with international fixed income investors, the Group Managing Director/Chief Executive Officer, Dr. Alex Otti of the bank expressed delight over the level of subscription the fixed income instrument received.

“The successful issuance of the Eurobonds 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 Diamond Bank boss was quoted to have said in a statement.

Otti noted that the success of the issuance of the dollar-denominated note has effectively launched Diamond Bank into the international market, saying that the bank would continue to tap from the opportunity in a phased manner.

Explaining the rationale behind the capital raising exercise and the decision of the bank to peg the maturity of the funds at five years, its  Chief Financial Officer, Mr. Abdulrahman Yinusa said the proceeds of the bond would be used to fund growth of the business.

He explained that with remarkable growth recorded in the last three years, the financial institution has grown its loan book significantly, with a large portion of the loans extended to major players in the oil and gas, telecommunications and power sectors.

“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 amongst the top three in trade finance.

“This led to us to receive the award of the Best Issuing Bank in Sub-Sahara Africa by the International Finance Corporation (IFC), an arm of the World Bank earlier this year,” he said.

 

 

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