Nigerian lenders bailed out by the central bank in 2009 may seek to list on the London Stock Exchange to raise funds before a deadline to recapitalize. Some of the eight lenders that received funds from the Central Bank of Nigeria have contacted the LSE about possible listings, said Ibukun Adebayo, the LSE’s head of primary markets Middle East & Africa. The central bank has ordered lenders to boost capital by Sept. 30 or it will withdraw interbank guarantees. “Financial services in Nigeria are an area where we see increases in listings,” Adebayo said in an interview in London yesterday. He declined to say how many banks had approached the bourse because the discussions are confidential. The central bank provided 620 billion naira ($3.9 billion) to eight of the nation’s 24 lenders after loans to equity speculators contributed to 700 billion naira of non-performing debt, according to the Economic and Financial Crimes Commission in Abuja. Governor Lamido Sanusi fired the chief executives of the distressed lenders and set up Asset Management Corp. of Nigeria, or Amcon, to buy bad debts from the banks to help recapitalize them before matching them with potential buyers. The bailed-out lenders are Afribank Nigeria Plc (AFRIBANK), Bank PHB Plc (PLATINUM), Equatorial Trust Bank Ltd., FinBank Plc (FIRSTINL), Intercontinental Bank Plc (INTERCON), Oceanic Bank International Plc (OCEANIC), Spring Bank Plc and Union Bank of Nigeria Plc. FinBank has signed an agreement to merge with First City Monument Bank Plc (FCMB), FCMB said on May 5. Africa Listings Oceanic Bank is yet to sign an accord with a potential investor after talks collapsed with First Bank of Nigeria Plc, the country’s third-biggest lender. Union Bank said on March 23 it signed an agreement with African Capital Alliance under which the group will invest $750 million into the bank. Access Bank Plc will merge with Intercontinental Bank, Access said on March 27. The LSE has 18 companies trading on its main market and 56 on its Alternative Investment Market that are incorporated or have operations in sub-Saharan Africa. Four African companies have global depositary receipts listed on the exchange, including Lagos-based lenders Diamond Bank Plc (DIAMONDB) and Guaranty Trust Bank Plc. (GUARANTY) To contact the reporter on this story: Chris Kay in London at ckay5@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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