FBN Holdings To Buy Back $300 Million Eurobond Debt Notes

First Bank of Nigeria Limited, a subsidiary of FBN Holdings Plc is to exercise its option to call the $300 million 8.25 per cent subordinated notes (Eurobond) raised from the international debt markets before the due date of August 2020.

In a filing to the Nigerian Stock Exchange (NSE) signed by the Company Secretary of FBN Holdings, Mr. Seye Kosoko, the bank said it would call and pre-pay holders of the note at the next callable date of August 7, 2018. The bank said: “the 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.”

Going by the bank’s 2017 full year’s financial statement, the Eurobond (notes I) bear interest rates at 8.25 per cent per annum up until the bank’s call date of 7 August 2018. From the call date up to the maturity date, the notes will bear interest at a fixed rate of 6.875 per cent per annum plus the prevailing two-year mid swap rate for the United States dollar swap transactions reported at 2.812 per cent.

Photo Caption: FBN HOLDING PLC, MANAGING DIRECTOR MR URUM EKE