Fidelity Bank repays $400m Eurobond at maturity
Fidelity Bank Plc says it has repaid its $400 million eurobond, which matured on October 28, using internally generated funds.
The five-year senior unsecured notes were issued on October 28, 2021, at an annual interest rate of 7.625 percent, payable every six months.
In a statement on Monday, the bank said it met all scheduled interest payments throughout the life of the instrument and had now settled the principal and final interest obligation in full.
“The redemption was funded from internally generated liquidity as part of the Bank’s forward-looking liquidity management strategy,” the bank said.
“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, Nneka Onyeali-Ikpe, managing director and chief executive officer (CEO) of Fidelity Bank, said the repayment reflects the lender’s financial management strategy and commitment to meeting its obligations to investors.
“We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management,” she said.
The bank said the repayment strengthens its record in the international debt capital market.
The 2021 issuance was Fidelity Bank’s third eurobond transaction, following earlier issuances in 2013 and 2017, through which it raised $300 million and $400 million, respectively.
According to the bank, the 2021 offering attracted investor orders exceeding $700 million.
The repayment comes after the bank completed its recapitalisation programme ahead of the Central Bank of Nigeria’s regulatory deadline.
Fidelity said the capital-raising exercise increased its eligible regulatory capital to approximately N533 billion, above the N500 billion minimum requirement for banks with international authorisation.
