FBN Holdings to redeem $300m 8.25% debt notes

THE board of FBN Holdings Plc, on Friday said First Bank of Nigeria Limited, its largest subsidiary, plans to exercise its option to call the $300m 8.25 per cent subordinated notes raised from the international debt markets before the due date of August 2020.

In the notice to the Nigerian Stock Exchange (NSE)  dated July 6, 2018 and signed signed by Seye Kosoko, its company secretary, the FBN Holdings said FirstBank, seeks to call and pre-pay holders of the note at the next callable date of August 7, 2018.

The bank, he said, took the decision as a liquidity management exercise, just as it demonstrates the strength of FirstBank’s foreign currency liquidity and robust capital base, while further enhancing the efficiency of the balance sheet.

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The notes are held by FBN Finance Company B.V and will exercise its option to call the $300m notes.

It will be recalled that the bank, had, in August 2003 issued a $300 million Eurobond following an investor roadshow in the UK and US as it sought to tap the global capital markets for a seven-year callable subordinated instrument with a yield guidance of 8.5 per cent.