Fidelity Bank Raised $400 Million Eurobond at 7.625%
Fidelity Bank Plc has raised $400 million Eurobond at 7.625%, its chief executive office Nneka Onyeali-Ikpe said on her official LinkedIn page. Fidelity Bank Seeks $500 Million Foreign Currency Loans
The foreign capital raised was sequel to the Tier 2 lender announced plan to access $500 million Eurobond from the international debt market through an unsecured note issuance. The management also indicated the issuance would be listed on the Irish Stock Exchange market.
“A couple of weeks ago, we approached the international finance community for funds and after a tasking virtual roadshow across 75 international institutions, Fidelity Bank PLC raised $400 million.
“I am proud of my team and the tenacity, resilience and passion which was put into this project. We look forward to many more wins as we continue our drive to become a tier 1 Bank by 2025”, Onyeali-Ikpe said.
Detail of the transaction shows that Fidelity issuance has successfully raised 80% of the sum anticipated for a 5-year maturity note ending on October 28 2026 at a 7.625% coupon rate.
MarketForces Africa reported that Nigerian banks have started a journey into the Eurobond market ahead of the implementation of the Basel III accord.
In a statement, the bank notified the Nigerian Exchange about planned investors meetings with regards to the foreign currency raise. It said the proceeds of the Eurobond raise are intended to be used for its general corporate purposes including supporting its trade finance business.
“The proposed aggregate offer of $500 million due in 2026 which will when issued will rank parri passu without preference with all other unsecured and unsubordinated obligations of the bank”, Fidelity bank informed.
Fidelity bank also reveals the intention to list the note on the Irish Stock Exchange, expecting that the note will be traded on its regulated market. Securities and Exchange Commission has confirmed no objection to the note, the bank said in a statement.
The tier 2 capital financial services company has informed the exchange and investing public that its third-quarter result would be delayed.
However, in the first half of the financial year 2021, Fidelity Bank Plc.’s numbers showed a significant year on year growth in both pre and post-tax profit, supported by significant growth in fee and commission income.
Fees and commission income jumped 39.1% year on year and there was a 9.8% reduction in operating expenses while the impairment charge bumped 70.6% amidst a marginal growth in net Interest Income.
The bank pre-tax profit and profit after tax grew significantly, up 72.4% year on year and 70.8% year on year respectively to N20.6 billion and N19.3 billion.
According to detail in the financial statement, its capital adequacy ratio (CAR) of 18.8% remains significantly above the regulatory minimum of 15%. #Fidelity Bank Raised $400 Million Eurobond at 7.625%