Aduragbemi Omiyale
By Aduragbemi Omiyale
The $400 million Eurobond notes issued to bond investors in 2017 by Fidelity Bank Plc have been redeemed on maturity on Monday, October 17, 2022.
The financial institution used the five-year debt instrument to carry out some of its operations and expand its services.
“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,” the chief executive of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, stated.
Recall that in May 2018, Fidelity Bank had a tender offer for refinancing its $300 million senior unsecured notes. It was the largest combined new issue and liability management offering ever by a Nigerian issuer and was well-received by analysts and investors.
The transaction, 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, noteholders received a total of $421 million, covering the principal amount and the accrued 6 months coupon in line with the executed trust deeds.
Fidelity Bank is one of the leading financial institutions in Nigeria. According to its interim audited result for the mid-year 2022, the lender reported strong financial ratios with a capital base of N3.7 trillion, pre-tax profit of N25 billion and a return on equity (ROE) of 15.4 per cent, evidencing the efficient management of the bank’s assets.
In recognition of its commitment to product innovation and strong corporate governance, the bank was recently recognised as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards.
The company also won the 2022 Platinum Award from the Development Bank of Nigeria for its leading role in disbursing loans to focused sectors.
In addition, it was recognised as the 2021 Fastest Growing Bank in Nigeria and MSME & Entrepreneurship Financing Bank of the Year at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
