Nigeria's Diamond listed on LSE

Nigeria's Diamond Bank has become the first Nigerian bank to be listed on the Professional Securities Market (PSM) of the London Stock Exchange (LSE).

The offer will enable Diamond to raise US$500mn through 37.6mn newly issued global depositary receipts (GDRs). Each GDR represents 100 ordinary Diamond shares and the settlement price per GDR has been set at US$13.30 and will be traded on PSM.

The proceeds raised on the PSM will support Diamond expand its presence in the Nigerian market. It has already established itself as one of the key provider of trade finance products, and is also looking to enter new business areas such as mortgages, insurance and investment banking.

Diamond Bank has also developed a number of important relationships with international financial institutions in an effort to strengthen its project and structured trade finance capabilities.

It has on-lending and trade facility agreements with the European Investment Bank, the IFC, The African Export Import Bank and US Ex-Im.

Commenting on the bank's listing on the PSM, Emeka Onwuka, CEO at Diamond Bank, remarks: "The listing is an important step in the evolution of the bank's strategy, and is aimed at raising stronger capital base, attracting new shareholders, raising its international profile, enhancing the leadership position of Diamond Bank in the middle market and developing the bank into a reputable financial conglomerate."

GDRs represent ownership of a given number of company's shares which can be listed and trade independently from the underlying shares. These financial instruments are typically used by firms in the emerging markets.