FBN Holdings Plc‘s largest subsidiary, First Bank of Nigeria Limited, has disclosed its intended early redemption of the fixed-rate $450 million subordinated note held by FBN Finance Company B.V.
This development was made known in a statement that was signed by the Company Secretary, Seye Kosoko, and issued to the Nigerian Stock Exchange.
According to the statement, FBN Finance Company B.V. will exercise its option to call the $450 million subordinated notes which were raised mainly from the international debt markets.
Nairametrics understands that the bond was initially due in July 2021. But it will now be paid off at the next callable date, which is slated for Tuesday, July 23, 2019.
[READ MORE: FIRS and CBN plans to focus searchlight on VAT paid by foreign individuals/firms]
“The Bank seeks to call and pre-pay holders of the Note at the next callable date of July 23, 2019. This liquidity management exercise demonstrates the strength of the Bank’s foreign currency liquidity and robust capital base, while further enhancing the efficiency of the balance sheet.” –FBN
[READ FURTHER: First Bank reiterates commitment to continue lead on digital banking]
Past Developments: Note that the company has a history of redeeming its debts ahead of the due date. In August 2018, the bank redeemed its $300 million subordinated bond ahead of its maturity date which was sometime in 2020. Explaining the situation, the bank’s Chief Executive Officer, Adesola Adedutan, said the bank had significant foreign currency liquidity which enabled it to pay off the bond without having to issue a new one.
At the moment, it is unclear whether it is a similar situation that has made it possible for the leading bank to announce an early redemption this time.
[READ: FirstBank hits N1tn in transactions processed through its Firstmonie Network]
FBN Holdings Plc’s share price is currently trading at N6.85 on the Nigerian Stock Exchange, NSE.
![TNS Event](https://i.ibb.co/8cBH227/thumbnail-TNS-GOOGLE-RESIZE-300x250.jpg")
Bingo