Managing Director/CEO
First Bank of Nigeria Limited and Subsidiaries
Culled—Proshare
August 8, 2018/First Bank of Nigeria
Having obtained the necessary approvals, I am pleased to formally announce that sequel to notice given on Friday 6th July, 2018 by First Bank of Nigeria Limited to FBN Finance Company B.V. of its intention to redeem the $300million 8.25% subordinated notes due August 2020, earlier issued to investors in 2013 at the next call date, August 7, 2018. Subsequently, that payment of $300million to all bondholders, has been made today, Tuesday, August 07, 2018
The redemption of these notes ahead of maturity further demonstrates the strength of the Bank’s foreign currency liquidity and the resilience of our balance sheet. Despite the 2020 Bond being a subordinated Tier 2 instrument, we are able to redeem this without any impact on our capital ratios, as a result of the surplus Tier 2 capital we currently hold which confirms the robust capital base of our Bank. To ensure the smooth redemption, we had systematically built up internal foreign currency liquidity on the back of our strong franchise and our deep market access in the course of the last year.
We are unlikely to be reissuing debt in Eurobond markets in the near term following this planned redemption, as reissuance will be a function of our funding needs, market conditions, expected pricing in relation to alternative funding structure and sources. At the moment, the Bank has ample liquidity to meet foreign and local currency funding needs and maintains sufficient market access to raise additional funds, if required.
The Bank has remained focused on delivering on its strategic objectives and continues to execute towards; improving its asset quality and risk management; enhancing revenue generation; and optimizing operational efficiency
Adesola Adeduntan
Managing Director/CEO
First Bank of Nigeria Limited and Subsidiaries