Diamond Bank Plc has said it will raise $500m through the sale of Global Depository Receipts.

The GDRs will be listed on the Professional Securities Market of the London Stock Exchange, according to a statement from the bank. The offer opens on Tuesday, November 20, 2007 in Nigeria.

The bank said, “Although GDRs are typically issued to international investors to afford them the flexibility of investing in equities of markets other than their own, Nigerian institutional investors are invited to participate significantly as $400m out of the $500m GDR offer by Diamond Bank Plc has been set aside for Nigerian investors.

“The GDRs can be converted to ordinary shares of Diamond Bank by the investor upon allotment.�

Guaranty Trust Bank in August raised $750m through GDR. Other Nigeria banks that have joined the growing list of GDR issuers include, Access Bank Plc, First City Monument Bank Plc and Fidelity Bank Plc.

Morgan Stanley is the Global Co-ordinator and Bookrunner of the offering, while Vetiva Capital Management Limited is acting as Domestic Co-ordinator and Joint Domestic Underwriter.

Other DUs are IBTC Chartered Bank Plc, PlatinumHabib Bank Plc, Access Bank Plc, Ecobank Nigeria Plc, BGL Securities Limited, Afribank Capital Markets Limited, Fidelity Bank Plc, Greenwick Trust limited and Sterling Capital Markets Limited.

“The London listing is an important next step in the evolution of Diamond Bank’s strategy and is aimed at raising capital for growth, attracting new shareholders and raising our international profile,� the bank’s Group Managing Director, Mr. Emeka Onwuka, was quoted to have said in the statement.

The Bank had its first major foreign equity capital injection in April 2007 when an international consortium led by Actis Capital LLP, injected $134m into the the bank as a strategic investor.

The investment gave Actis a 19.1 per cent stake in the bank. Actis is a leading private equity investor in emerging markets, having significant investments across Africa, China, India, South East Asia and Latin America. Actis’ approach to investment is long-term and partner-oriented.

Diamond Bank has strategic relationships with other international financial institutions and export credit guarantee agencies International Finance Corporation, European Investment Bank, Africa Export & Import Bank, US Export & Import Bank. - Punch