FBN Holdings Plc, the parent company of First Bank Nigeria, plans to raise $500m by selling a Eurobond this year after abandoning a similar offering last year.

The Chief Executive Officer, FBN Holding, Mr. Bello Maccido, told Reuters that the money was needed to finance investments in loans and infrastructure.

He said, “The bank intends to expand its investment banking and commercial business as well as insurance.”

The bank last year suspended plans to issue the bond because of market conditions. Maccido, however, said, “We believe conditions will be favourable this year.”

The lender is joining other Nigerian banks in raising funding in dollars to help finance infrastructure projects in Africa’s top oil producer.

For instance, Fidelity Bank Plc sold a $300m five-year bond on May 2.

Diamond Bank Plc is planning to raise as much as $750m this year, while Skye Bank Plc plans to raise $150m next quarter.

The stock rose by 0.5 per cent to 19.71 naira at the close of Lagos trading.

The stock has gained 25 per cent this year, beating the 18 per cent rise in the Nigerian Stock Exchange Banking Index, which tracks the performance of Nigeria’s 10 biggest banks.

Meanwhile, trading activities on the NSE closed on a negative note on Tuesday, with major indicators closing lower.

Specifically, the market capitalisation of the listed equities fell by N39bn or 0.35 per cent from N11.170tn on Monday, to N11.131tn.t

Similarly, the NSE’s All-Share Index lost 120.38 basis points or 0.34 per cent from 34,935.62 points to 34,815.24 basis points.

May & Baker Nigeria Plc led 33 other stocks on the price gainers’ chart, rising by 10 per cent or 18 kobo to close at N1.98 per share.

Cutix Plc followed, rising by 10 per cent or 16 kobo per share to close at N1.76 per share.

Chemical and Allied Products Plc and Air Services and Logistics Plc gained 9.9 per cent to close at N56.62 and N3.99 per share in that order.

Source: Punch