Union Bank of Nigeria Plc is poised to raise up to $250 million of debt and has appointed Citigroup and Renaissance Capital to assist with the sale, "two banking sources" told Reuters.
The debt issuance could include a local-currency bond, according to the March 1 report, which noted that the offering would follow a $163 million share issuance by the bank in the fourth quarter of 2017, as well as Nigeria's sale of $2.5 billion in Eurobonds in February.
Nigerian lenders are building up capital stocks ahead of new loss-accounting rules that are expected to take 50 to 200 basis points off their capital ratios, banking executives have told the newswire. Banking sources said Union Bank could be followed into the debt market by FCMB Group Plc and Diamond Bank Plc.
