First Bank to Redeem $450m Bonds Ahead of Due Date

By Dipo Olowookere

The management of First Bank has announced its intention to redeem the $450 million notes it issued sometimes ago to investors.

The financial institution, which is the largest subsidiary in the FBN Holdings Plc family, disclosed in a notice yesterday that it wants to pay holders of the debt instrument two years before its maturity.

The company had sold the notes to investors at the international markets at a coupon rate of 8.00 percent and were due to mature in July 2021, but First Bank said it wants to exercise its rights to redeem them before due date.

In view of this, the firm said holders of the debt instruments should begin to receive payments from Tuesday, July 23, 2019.

“First Bank of Nigeria, the largest subsidiary of FBN Holdings Plc intends to exercise its option to redeem the fixed rate subordinate note held ny FBN Finance Company B.V.

“Accordingly, FBN Finance Company B.V. will exercise its option to call the $450 million 8.00 percent subordinate notes, raised from the international markets, due in July 2021.

“The bank seeks to call and pre-pay holders of the note at the next call date of July 23, 2019,” a statement from the company said.

The lender further said, “This liquidity management exercise demonstrates the strength of the bank’s foreign currency liquidity and robust capital base, while further enhancing the efficiency of the balance sheet.”