Fidelity Bank redeems $400m Eurobond Notes

Fidelity Bank plc said that it has redeem the $400 million Eurobond Notes due October 17, 2022. In a statement the bank said “On October 17, 2017, the Fidelity bank successfully issued a $400 million 5-year Eurobond. The transaction also included a Tender Offer (the “Tender Offer” or “Offer”) for the refinancing of the Bank’s $300 million Senior Unsecured Notes issued in May 2018. The transaction was the largest combined new issue & liability management offering ever by a Nigerian issuer and was well received by analysts and investors. The transaction which was managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited achieved an oversubscribed order book of $630 million. Upon final maturity of the Eurobond, note holders received a total of $421 million covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds.   

According to the Bank’s MD/CEO; Nneka Onyeali-Ikpe, “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”. Fidelity Bank is one of the financial institutions in Nigeria. According to its interim audited result for the mid-year 2022, the Bank reported strong financial ratios with a capital base of N3.7trillion, PBT of N25 billion and a return on equity (ROE) of 15.4% evidencing the efficient management of the bank’s assets.