(Adds plan for share issue, details)
LAGOS, May 13 (Reuters) - 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 Tuesday.
“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 percent now. (Reporting by Chijioke Ohuocha; Editing by Greg Mahlich)