First Bank of Nigeria Limited, a subsidiary of FirstHoldCo Plc, has redeemed its $350m Eurobond upon maturity on October 27, 2025, a move that underscores the lender’s effective asset and liability management strategy and solid foreign currency liquidity position.
The Eurobond, issued in October 2020 as senior unsecured notes at an 8.625 per cent coupon rate with semi-annual interest payments, was 70 per cent oversubscribed at issuance, reflecting international investors’ enduring confidence in FirstBank’s stability, corporate governance and financial strength.
According to a statement from the Group, proceeds from the Eurobond were deployed to support strategic customer projects and key national initiatives, reinforcing the Bank’s role in driving Nigeria’s economic development and infrastructure financing.
With this latest redemption, FirstBank has now fully repaid an aggregate of $1.275bn across four Eurobond maturities since its debut issuance in 2007, cementing its reputation as a consistent and credible issuer in the global capital markets.
The redemption, fully financed from the Bank’s balance sheet, highlights its prudent risk management approach, sound liquidity profile, and disciplined liability management practices amid a challenging macroeconomic environment.
Commenting on the development, the Chief Executive Officer of FirstBank Group, Dr. Olusegun Alebiosu, said the successful redemption reinforces investor confidence in the 131-year-old financial institution.
“This redemption is entirely from the Bank’s balance sheet, reflecting FirstBank’s superior assets and liabilities management, the unrivalled franchise strength, and the confidence that the investment community continues to repose in FirstBank,” Alebiosu said.
He reiterated the Bank’s commitment to supporting corporate and institutional clients through robust transaction banking, treasury, and cash management solutions, enhanced by ongoing technological investments designed to improve customer experience and operational efficiency.
The Eurobond redemption also comes on the heels of positive rating actions from leading global rating agencies.
Fitch Ratings recently affirmed the Long-Term Issuer Default Ratings (IDRs) of both FirstHoldCo and FirstBank at ‘B’ and upgraded their National Long-Term Ratings to ‘A+(nga)’ from ‘A(nga)’, with a stable outlook. Similarly, S&P Ratings affirmed the Group and Bank’s long-term rating at ‘B-/Stable’, signalling sustained market confidence in the institution’s fundamentals.
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