Fidelity Bank Plc has redeemed its 5-year $400 million Senior Unsecured Notes at maturity, reaffirming its dedication to assembly investor obligations and reinforcing its observe document within the worldwide debt capital markets.
Issued on 28 October 2021, the 5-year Eurobond matured on 28 October 2026 and carried an annual coupon of seven.625 per cent, payable semi-annually. Fidelity Bank met all scheduled coupon funds all through the lifetime of the instrument and has now fulfilled its remaining reimbursement obligation in full, overlaying each principal and accrued curiosity.
The redemption was funded from internally generated liquidity as a part of the financial institution’s forward-looking liquidity administration technique. Through a devoted sinking fund, Fidelity Bank progressively supplied for the maturing obligation, enabling the financial institution to satisfy its dedication whereas sustaining business-as-usual operations and compliance with relevant regulatory liquidity necessities.
Commenting on the event, Fidelity Bank Plc’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, stated the profitable redemption mirrored the financial institution’s disciplined strategy to monetary administration and its dedication 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,” Mrs Onyeali-Ikpe stated.
The redemption additional strengthens Fidelity Bank’s document within the worldwide debt capital markets. The 2021 issuance marked the financial institution’s third Eurobond transaction, following earlier issuances in 2013 and 2017, during which the financial institution raised $300 million and $400 million, respectively. The 2021 provide attracted investor orders exceeding US$700 million, reflecting robust demand for the financial institution’s worldwide debt providing.
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The profitable Eurobond redemption follows the completion of Fidelity Bank’s recapitalisation programme forward of the regulatory deadline. The financial institution’s capital-raising efforts elevated its eligible regulatory capital to roughly N533 billion, exceeding the N500 billion minimal capital requirement for banks with worldwide authorisation.
The completion of those milestones underscores Fidelity Bank’s robust capital place, prudent liquidity administration and disciplined strategy to monetary execution. It additionally reinforces the Bank’s capability to satisfy its monetary obligations whereas pursuing its strategic progress targets throughout home and worldwide markets.
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