Fidelity Bank Redeems $400 Million Eurobond at Maturity
Fidelity Bank has successfully redeemed its 5-year, $400 million Senior Unsecured Notes. This reaffirms its commitment to meeting investor obligations and reinforces its track record in the international debt capital markets.
This is contained in a statement by Mr Adebowale Banzi, Team Lead Media and Internal Communications, Fidelity Bank on Wednesday in Abuja.
He said that the 5-year Eurobond, issued on Oct. 28, 2021 matured on Oct. 28 and carried an annual coupon of 7.625 per cent, payable semi-annually.
Banzi said Fidelity Bank met all scheduled coupon payments throughout the life of the instrument and has now fulfilled its final repayment obligation in full, covering both principal and accrued interest.
”The redemption was funded from internally generated liquidity as part of the Bank’s forward-looking liquidity management strategy.
”Through a dedicated sinking fund, Fidelity Bank progressively provided for the maturing obligation, enabling the Bank to meet its commitment while maintaining business-as-usual operations and compliance with applicable regulatory liquidity requirements.”
Commenting on the development, Mrs Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank, said the successful redemption reflected the Bank’s disciplined approach to financial management and its commitment to delivering on its obligations.
“This successful redemption demonstrates the strength of our franchise, the discipline of our balance sheet management and our commitment to honouring our obligations to investors and other stakeholders.
”We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management,” She said.
The media head added that the redemption further strengthens Fidelity Bank’s record in the international debt capital markets.
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He said that the 2021 issuance marked the Bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, wherein the Bank raised 300 million and 400 million U.S. dollars respectively.
”The 2021 offer attracted investor orders exceeding 700 million U.S. dollars, reflecting strong demand for the Bank’s international debt offering.”
The successful Eurobond redemption, he said, followed the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline.
Banzi said that the Bank’s capital-raising efforts increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks with international authorisation.
”The completion of these milestones underscores Fidelity Bank’s strong capital position, prudent liquidity management and disciplined approach to financial execution.
”It also reinforces the Bank’s capacity to meet its financial obligations while pursuing its strategic growth objectives across domestic and international markets,” he said
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