Dipo Olowookere
By Dipo Olowookere
A mid-level financial institution in Nigeria, Fidelity Bank Plc, has issued local bonds worth N41.2 billion to investors.
The notes, with a 10-year maturity, were issued at a coupon rate of 8.5 per cent, the lender disclosed. This means the papers, which are part of the bank’s N100 billion bond issuance programme, are expected to mature in 2031.
Business Post recalls that in December 2020, Fidelity Bank announced its intention to approach the local debt market to raise fresh capital aimed to provide funding support to support Small and Medium-sized Enterprises (SMEs), retail business and technology infrastructure.
According to the CEO of the financial institution, Mrs Nneka Onyeali-Ikpe, who assumed office this year, the use of the proceeds of the bond sale aligns with the organisation’s tier-I ambition.
She further disclosed that, “The successful bond issuance highlights the confidence in the Fidelity brand, as well as our capability to expand our funding sources, and deliver innovative financial services to our esteemed customers.”
Fidelity Bank is a tier-2 bank and its inclusion in the topmost category will broaden the banking space in the country.
At the moment, only five lenders are on that level and they are Zenith Bank, Access Bank, GTBank, UBA and First Bank, all christened by Business Post as ZAGUF.
Also speaking on the bond sale, the Chairman of Fidelity Bank, Mr Mustapha Chike-Obi, said the exercise reaffirms the “continued investor confidence in our corporate strategy and aspirations, strong corporate governance structure and solid and stable executive management team with a robust history of superior financial performance and returns.”
It was gathered that the corporate debt instrument was 137 per cent subscribed as subscriptions worth N56.6 billion were received from diverse investors.
