Fidelity Bank Redeems 5-Year $400m Eurobond

By Aduragbemi Omiyale

The 5-year $400 million senior unsecured Eurobond issued by Fidelity Bank Plc in 2021 has been redeemed after it matured.

Bondholders received their bullet repayment on Wednesday, October 28, 2026, with the lender meeting all scheduled coupon payments throughout the life of the debt instrument.

The redemption further strengthens Fidelity Bank’s record in the international debt capital markets.

The 2021 issuance marked the bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, wherein the company raised $300 million and $400 million, respectively.

The 2021 offer, issued at an annual coupon of 7.625 per cent and payable semi-annually, attracted investor orders exceeding $700 million, reflecting strong demand for the financial institution’s international debt offering.

This also reaffirms the organisation’s commitment to meeting its obligations to investors and reinforces its track record in the international debt capital markets.

The redemption was funded from internally generated liquidity as part of the Bank’s forward-looking liquidity management strategy. 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.

“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,” the chief executive of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, said.