Nigerian bank FCMB says raised $115 mln in third-quarter bond issue

Nigerian bank FCMBraised 23 billion naira ($116 million) in a bond issue in the third quarter last year, its chief executive said on Thursday, adding that the mid-tier lender still had room to raise further debt even if there is an official devaluation of the naira.
Ladi Balogun said the bank had adequate capital and was embarking on a deliberate strategy to replace fixed-term deposits with bonds so that it will not be hit by central bank cash reserve requirements.
He said the bank was targeting a loan growth rate of 9 percent for 2016 even if there is a devaluation of the naira.
"We would pursue capital preservation and in the event in a devaluation of the currency we still have headroom for (raising more) Tier II debt. We don't see a need to raise Tier I (equity capital)," Balogun told an analysts' conference call.
Nigeria's naira has weakened 35 percent below its official level on the black market, weighed on by sinking oil prices and intensifying speculation that Africa's biggest economy will have to formally devalue.
Last week the bank reported its net profit fell 92 percent to 1.87 billion naira for the first nine months of 2015, warning that revenue pressures continued into the fourth quarter.
However, Balogun said there had been some writebacks on consumer loans in the final three months of last year after delayed salaries of most government workers were at last paid, bringing relief to the loan book.
Several Nigerian states borrowed from the bond market and banks to fund projects but the plunge in the price of crude oil, which accounts for about 70 percent of government revenues, hit the government's ability to pay its bills, including public sector salaries.
Meanwhile FCMB said it had restructured loans to the oil and gas industry totalling $252 million at the end of September and is in the process of restructuring two more loans with a combined value of $132 million.
The bank's share price has fallen 45 percent to trade at 0.89 naira on Thursday, down 4.3 percent from Wednesday.
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*First published by Reuters