December 9, 2022

Fidelity Bank redeems $400m Eurobond notes

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Fidelity Bank Plc announced on Monday the redemption of $400 million in Eurobond Notes due Oct. 17.

Mr Meksley Nwagboh, Divisional Head, Brand and Communications of Fidelity Bank, stated this in a statement issued on Monday in Lagos.

On October 17, 2017, the bank successfully issued a $400 million, five-year Eurobond.

According to the release, the transaction also includes a tender offer to refinance the bank’s $300 million Senior Unsecured Notes issued in May 2018.

“The transaction is the largest combined new issue and liability management offering ever by a Nigerian issuer and was well received by analysts and investors.”

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“The transaction, which is managed by Citigroup Incorporated, Renaissance Capital, and Standard Bank Group Ltd., achieved an oversubscribed order book of $630 million.

“Upon final maturity of the Eurobond, noteholders received a total of $421 million covering the principal amount and the accrued six-month coupon in line with the executed Trust Deeds,’’ it said.

Mrs Nneka Onyeali-Ikpe, the Managing Director, of Fidelity Bank, said, “the liquidation of the notes despite the strong headwinds in the domestic economy, especially when viewed against the backdrop of short dollar supply, is a testament to the strong liquidity position of the bank and the resilience of our balance sheet.”

According to its interim audited result for the mid-year 2022, the bank reported strong financial ratios with a capital base of N3.7 trillion, profit before tax of N25 billion and a return on equity of 15.4 percent, evidencing the efficient management of the bank’s assets.

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