Nigeria’s Diamond Bank Obtains National Bank Licence, To Pay Off $200 mln Eurobond At Maturity
By Olumidagreaton December 1, 2018
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Nigeria’s Diamond Bank said it has received approval from the Central Bank of Nigeria (CBN) to operate only in Nigeria, in a move to lower capital requirements after selling its international units.
The bank also announced plans raise medium-term funding over a period of five years and to repay a $200 million Eurobond at maturity in May next year.
The lender which has recently engulfed in some crisis following the exit of four of its directors and a sharp fall in its share price at the Nigerian Stock Exchange (NSE) said it in talks with a multilateral agency to raise additional funds.
Some elements have been circulating insider stories on how the fortune of the bank deep due to many factors including politics of succession by the family of the founder and governance issues.
The bank said it plans to pay off the Eurobond which would mature in May with dollars generated from operations and has no plan to refinance the debt.
The bank said it has completed due diligence and agreed indicative terms with the agency, which it declined to name.
Diamond Bank shares, which have been in freefall this month, dropped 3 percent on Friday to a new record low of 0.65 naira each.
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