First Bank receives approval for bonds

24 July 2009

First Bank has received approval for bonds, which it will reportedly use to raise finance for infrastructure projects.

Reuters explained how sources had informed it Nigeria's oldest bank had gained permission for a 500 billion naira (£2 billion) bond issue.

An insider told the news provider it is likely to be used on schemes such as the Lagos-Ibadan highway.

Nigeria's central bank and the Securities and Exchange Commission allegedly gave the bonds - which are the first of its kind in three years - the go ahead.

Samir Gadio of Renaissance Capital told Reuters the finance is a "positive development", even though the structure of it still relatively unknown.

"If we are talking about a bond in local currency, it's going to be attractive because of the demand and supply gap for corporate bonds," he said.

Established in 1894, First Bank became listed on the Nigerian Stock Exchange (NSE) in 1971.

Since then, it has won the NSE President's Merit Award eleven times for the best financial report in its sector.

Category: Transport