Don't Miss


Home   >   Market - Finance   >   Finance   >   Diamond Bank seeks merger talks, to raise bonds

Diamond Bank seeks merger talks, to raise bonds

By on April 4, 2012

Diamond Bank said on Tuesday it will ask shareholders for their approval to enter into merger talks with other banks and also plans to raise $200 million in bond issues.

The mid-tier lender has been trying to expand after state-owned rescue bank AMCON said it will privatise three nationalised banks within 18 to 24 months.

It didn’t provide details on timing for the debt issue but said it will target strategic investors including the World Bank’s private sector lender, the International Finance Corp .

It plans to seek approvals at the next meeting of shareholders on April 30.

The company only recently released its FYE 2011 audited financial statements, reporting an N 11.2 billion loss on the back of increased provisions for bad debts and a tougher operating environment.

Not long after the release of those financial statements, the company placated its shareholders by quickly releasing its Q1, 2012 financial statements, which show a N 4.9 billion profit booked in the first three months of 2012.