(Adds plan for share issue, details)
LAGOS May 13 Nigeria's Diamond Bank
is in the Eurobond market to issue between $300
million to $350 million worth of debt and has started a roadshow
to sell the bond, its chief financial officer told Reuters on
"It would be a benchmark issue, anything between $300
million and $350 million," Abdulraham Yinusa said.
Yinusa said the mid-tier lender will also tap equity markets
following the debt deal to raise a further $200 million to $250
million to strengthen its capital base.
Shares in Diamond Bank gained 1.09 percent on Tuesday to
6.47 naira. The shares are down 13 percent this year.
Diamond Bank won shareholders' approval in April to raise
fresh capital in debt and equity and Chief Executive Alex Otti
has said the bank aims to raise up to $550 million.
Citigroup is marketing the Eurobond and has organised
roadshows in Britain and the United States. Bankers expect the
bond, which has a five-year maturity, to be priced on Wednesday
at an 8 to 9 percent yield.
Diamond Bank is targeting a capital adequacy ratio of over
20 percent of assets after the capital injection, from around 17
(Reporting by Chijioke Ohuocha; Editing by Greg Mahlich)