Fidelity Bank Plc has efficiently redeemed its 5-Year US$400 million Senior Unsecured Notes at maturity, reaffirming its dedication to assembly its obligations to buyers and reinforcing its observe file 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 compensation obligation in full, masking each principal and accrued curiosity.
The redemption was funded from internally generated liquidity as a part of the Bank’s forward-looking liquidity administration technique. Through a devoted sinking fund, Fidelity Bank progressively offered for the maturing obligation, enabling the Bank to satisfy its dedication whereas sustaining business-as-usual operations and compliance with relevant regulatory liquidity necessities.
Commenting on the event, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr/Mrs Nneka Onyeali-Ikpe, mentioned the profitable redemption mirrored the Bank’s disciplined method 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,” Onyeali-Ikpe mentioned.
The redemption additional strengthens Fidelity Bank’s file within the worldwide debt capital markets. The 2021 issuance marked the Bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, whereby the Bank raised $300 million and $400 million respectively. The 2021 provide attracted investor orders exceeding US$700 million, reflecting robust demand for the Bank’s worldwide debt providing.
The profitable Eurobond redemption follows the completion of Fidelity Bank’s recapitalisation programme forward of the regulatory deadline. The Bank’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 method to monetary execution. It additionally reinforces the Bank’s capability to satisfy its monetary obligations whereas pursuing its strategic development targets throughout home and worldwide markets.
