Diamond Bank To Raise $400m From Rights Issue | Bizness Watch

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Diamond Bank To Raise $400m From Rights Issue

Diamond Bank Plc is set to raise between $300 million and $400 million from its shareholders through rights issue, pending regulatory approval, Chief Finance Officer, Mr. Abdulrahaman Yinusa said on Wednesday.

“We are in the process of filing with the relevant regulatory authorities for a rights issue, which we expect to be concluded by third quarter,” Yinusa told Reuters.

Dr. Alex Otti,Group Managing Director/CEO. Diamond Bank

Dr. Alex Otti,Group Managing Director/CEO. Diamond Bank

This came following a successful debut Eurobond issuance last week worth $200 million, more than $100 million short of its $300 million to $350 million target.

Diamond Bank had in April got approval from shareholders to raise fresh capital in equity and debt, as it seeks to raise $500 million to increase its supplementary capital to $750 million. It targets raising its Capital to Risk (Weighted) Assets Ratio (CRAR) to more than 20 percent of assets from the current 17 percent after the capital injection.

The bank has shown impressive growth rate in recent times, climbing to 6th from a previous 11th in the ranking of Nigeria’s largest banks in terms of total assets size.

Group Managing Director/Chief Executive Officer of Diamond Bank, Mr. Alex Otti had last week described the “successful issuance” of the Eurobonds as a milestone in the bank’s growth path.

He added that the bank has been launched into the international market by successfully issuing the dollar-denominated note.

The bank recorded a 29.1 percent increase in profit after tax N22.1 billion ($136.3 million) in 2012 to N28.5 billion () in the year end 2013.




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