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Fidelity Bank to List $500m Eurobond on Irish Stock Exchange

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Fidelity Bank $500m Eurobond

By Modupe Gbadeyanka

Tier-2 lender in Nigeria, Fidelity Bank Plc, has announced its intention to raise about $500 million Eurobond to be used for financing the tender offer of the existing $300 million notes and for its general banking purposes.

A statement signed by the chief executive of the financial institution, Mr Nnamdi Okonkwo, stated that the senior unsecured medium term deal notes would be listed on the Irish Stock Exchange, with the expectation that the notes will be traded on its regulated market.

According to Mr Okonkwo, both the Central Bank of Nigeria (CBN) and the Securities and Exchnage Commission (SEC) have given “no objection” approvals to the transaction.

“Fidelity Bank Plc is pleased to notify the Nigerian Stock Exchange (NSE) and the investing public of its intention to launch up to $500 million senior unsecured medium term deal notes.

“The bank intends to list the notes on the Irish Stock Exchange, with the expectation that the notes will be traded on its regulated market. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have given ‘no objection’ approvals to the transaction.

“The bank intends to issue the notes directly but will retain the flexibility to substitute the issuer with an offshare special purpose vehicle, where market conditions require and allow for such, pprior to the maturity of the notes.

“The bank intends to utilise the net proceeds of the notes to finance the tender offer of the existing notes and for its general banking purposes.

“The bank will pay the net proceeds from the notes issuance after settling the existing notes into its foreign currency or converted into Naira, depending on the bank’s requirement from time to time.

“A certificate of capital importation will not be obtained in respect of the proceeds of the notes that are not converted into Naira because a CCI is only issued in respect of capital imported into Nigeria and converted into Naira.

“The bank intends to make principal repayment and interest payments on the notes from its foreign currency reserves since it will not be able to obtained access to the Nigerian foreign exchange market for the purpose of making such payments.

“Notwithstanding the foregoing, the bank may obtain the approval of the CBN to access the official foreign exchange market if for any reason the bank does not have sufficient currency reserves to meet the principal and interest payments due on the notes.

“The bank intends to make announcement regarding planned investor meetings in Europe and the United States in respect of the transaction.

“The commencement of the transaction will however be subject to finalising the transaction documentation and prevailing market conditions,” the statement to the NSE said.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Banking

MFS Africa Expands into Nigeria With Baxi Acquisition

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Baxi

By Sodeinde Temidayo David

Nigerian fintech startup, Baxi, has been acquired by the Pan-African payments company, MFS Africa, giving way to its business expansion into Nigeria.

The acquisition of the Nigerian firm was sealed after MFS Africa signed an agreement with Capricorn Digital, Baxi’s parent business, for an undisclosed amount.

Founded in 2014, Baxi provides a cash-in or cash-out offering as well as value-added services like account opening, money transfer, bill payment and more, through its network of more than 90,000 agents.

These services are provided through the company’s retail network of agents and merchants in some of Nigeria’s most remote regions, through its BaxiBox POS, BaxiPay, Baxi MPoS Device, and BaxiRIMS products.

Recall that MFS Africa had earlier acquired East African payments management startup Beyonic, a Ugandan fintech startup and this time also, has plans to build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria.

The deal, which is subject to approval from the Central Bank of Nigeria (CBN), sees MFS Africa expand into Nigeria for the first time, having had a limited presence thus far due to the country’s small number of mobile wallets.

MFS Africa will also expand Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.

Speaking on the acquisition, the Chief Executive Officer (CEO) of  Capricorn, Mr Degbola Abudu, expressed that the future of the mobile payments landscape in Africa is a game of few, where consolidation is the way forward, and attempting to scale alone would require more capital expenditure and a longer time to execute.

“By teaming up with MFS Africa, and with the strong support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth.”

“We believe that we’ve barely scratched the market’s potential. The deal brings many things that allow us to grow very quickly,” Mr Abudu noted.

MFS Africa intends to build Baxi into a key node on its digital payment network, allowing customers to make cross-border payments to and from Nigeria, similar to what it’s done with mobile money operators across Africa.

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Banking

Nigerian Digital Lender Brass Gets $1.7m to Support SMEs

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Brass

By Ashemiriogwa Emmanuel

Provider of premium banking services for African Small/Medium Enterprises (SMEs), Brass, has raised the sum of $1.7 million in a funding round to strengthen its financial services rendered to local entrepreneurs, traders, and fast-growing businesses across the continent.

Investors who participated in the round included the co-founder of Flutterwave, Mr Olugbenga Agboola, co-founder of Paystack, acquired by Stripe, Mr Ezra Olubi, Hustle Fund, Acuity Ventures, Uncovered Fund, and Ventures Platform.

Brass’ past investors have included Olumide Soyombo of Voltron Capital, Leonard Stiegler, Fola Olatunji-David, Yemi Lawani, and two senior executives from major Nigerian banks.

With the fresh funding, the Nigerian digital bank is set to launch a number of new product categories, which will lead to expanding its credit market presence.

Even as the startup is looking at broadening its customer base, the new financial capacity will facilitate its plans to accelerate its expansion into other African countries such as South Africa and Kenya.

Explaining further on the significance of the fundraising, the Co-Founder and CEO of Brass, Mr Sola Akindolu, who is a former Head of Product at Kudi Bank, noted that the contributions made by these investors, together with their expertise, will not only play a vital role ahead of Brass’s expansion into South Africa and Kenya, but also in the future ambitions outside of the continent.

“The basic needs of Africa’s SMEs are just as significant and unique as those of the customers they serve each day and now more than ever, we need innovative and world-class financial services solutions that meet their expectations.

“These local businesses have supported our economies for decades, forming the backbone of Africa’s success to date, and now is the time to bet on them.”

“At Brass, we’ve made some great strides over the last year in tackling one of Africa’s most critically underserved customer bases but with an estimated $5.1tn credit gap globally, our work is far from over,” he added.

Expressing excitement over the investment, Mrs Elizabeth Yin, General Partner at Hustle Fund, one of the investors, said “We believe Africa’s entrepreneurial ecosystem, and fintech sector is witnessing an unprecedented shift, and Brass is at the forefront of that, supporting local businesses and professionals with banking technology to supercharge their growth. We are excited by their vision, and honoured to be joining them on their journey.”

Founded in July 2020, Brass offers full-stack, commercial-grade banking solutions to SMEs cutting across different business classes, allowing them to gain greater clarity and control over their money operations.

Brass online platform provides a wide range of business banking needs, including credit and payment services, payroll and expense management, Application Programming Interface (API) support, and other essential business services.

Having disbursed over $2 million in credit to business since inception, Brass’s recent solution which is ‘Brass Capital’ helps thousands of businesses scale up with its cash-flow financing design.

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Ecobank Staff, Families Raise Awareness for Mental Health

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Ecobank Day mental health

By Dipo Olowookere

On Saturday, October 23, staff and families of the pan African financial institution, Ecobank Transnational Incorporated (ETI) across 33 countries of its operations on the continent will raise awareness for mental health.

This is a flagship annual event of the lender tagged Ecobank Day and in Nigeria, there would be impactful discussion sessions and mental health empowerment training programs to further raise awareness and help reduce stigma and discrimination in the country.

A statement issued by the Head of Marketing and Corporate Communication at Ecobank Nigeria, Mr Jide Sipe, disclosed that this year’s Ecobank Day is themed Mental Health – Time to Talk and Act! and it marks the start of the final year of the three-year campaign to raise awareness and help prevent Non-Communicable Diseases (NCDs) in Africa.

He further said a hybrid webinar will be hosted to “discuss mental disorders, raise awareness about them, and the care and support options available.”

“We will be encouraging people to talk about their feelings and suggest lifestyle behaviour changes which can also make a difference – like exercising regularly.

“There is often a lot of stigma around mental health. Those affected can face isolation, exclusion from work and family life, increased stress levels, negative addictive behaviours and substance abuse. No one should be made to feel ashamed because of a mental health issue. It can happen to anyone at any time,” he added.

It was gathered that some personalities invited for the programme include Dr Olusola Olowookere, Consultant Psychiatrist/Forensic Medical Examiner; Titilayo Medunoye, founder/CEO, Milky Express; Oluwakemi Akintoyese, Clinical Psychologist; Hadiza Blell-Olo, a humanitarian and artiste known as Di’Ja; Dr Tomilola Oyekunle, a registered psychologist and host of others.

Since the inaugural Ecobank Day in 2013, employees of the bank have supported a variety of causes and shown compassion for the welfare of various local communities.

Previous initiatives have focused on orphanages, cancer screening, education, maternal healthcare, safe water supply and malaria prevention.

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