First Bank of Nigeria issues USD 300mn 7-year Tier 2 notes

By bne IntelliNews August 12, 2013

First Bank of Nigeria (FBN) has issued USD 300mn 7-year subordinated bonds with an 8.25% coupon, according to a statement by global ratings agency Fitch, which has assigned the notes a B- final rating. The Tier 2 notes are due August 2020, but will be callable in August 2018, at which point the interest rate will be reset to 6.875% plus the prevailing USD two-year mid-swap rate. The notes have been issued by a special purpose vehicle, FBN Finance Company B.V.

Fitch considers FBN (B+/Stable), along with Zenith Bank and United Bank for Africa (UBA), as the most systemically important banks in Nigeria, given their dominant retail franchises and importance to the real economy.

FBN posted a net profit of NGN 24.44bn (EUR 114.6mn) for the first quarter of 2013, up 22% y/y. Its net interest income edged 0.7% higher y/y to NGN 56.34bn, while net fee and commission income jumped 25% y/y to NGN 19.52bn. Credit impairment charges shrank 68% to NGN 1.7bn. The bank’s loan book grew 0.3% during the first three months of the year to NGN 1.546trln at end-March and client deposits rose 5.4% to NGN 2.532trln. Total assets widened by 8.6% to NGN 3.459trln.

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