Dipo Olowookere
By Dipo Olowookere
The corporate bonds worth N41.2 billion sold to investors recently by Fidelity Bank Plc have been listed on the Nigerian Exchange (NGX) Limited.
The debt instruments were admitted on the trading platform of the nation’s stock exchange on Tuesday, a notice issued by the NGX and sighted by Business Post confirmed.
The notes were sold at 8.5 per cent and they are with a maturity of 10 years, meaning they will mature in 2031, according to the disclosure.
A total of 41,213,000 units of the papers at a unit price of N1,000 were issued to subscribers and were listed on the exchange today.
The bonds were sold under the N100 billion debt issuance programme of the tier-2 Nigerian lender. The coupon would be paid twice every year on July 7 and January 7 till 2031.
“The market and investing public are hereby notified that Fidelity Bank Plc’s N41,213,000,000 – 10 years 8.5 per cent subordinated unsecured fixed-rate series one bonds under the N100 Billion Fidelity Bank Plc’s debt issuance program were listed today, Tuesday, April 20, 2021, on the Nigerian Exchange Limited,” the notice read.
Proceeds from the sale of the bonds are expected to be used to provide funding support to support Small and Medium-sized Enterprises (SMEs), retail business and technology infrastructure.
Fidelity Bank is regarded as a friend of the SMEs in Nigeria because of its lending support to the sector. The bank is a big player in that space, offering different products tailored to meet their demands.
The role of SMEs in the nation’s economy cannot be pushed aside, especially at a time the country is just getting out of a recession it slipped into in the third quarter of last year as a result of a decline in crude oil prices and the COVID-19 pandemic.
The CEO of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, believes that the use of the proceeds of the notes aligns with the organisation’s tier-I ambition, noting 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.”
