Fidelity Bank repays $400m Eurobond at maturity

By Adebola Muili

Fidelity Bank Plc has fully repaid its $400 million Eurobond at maturity, meeting its principal and accrued interest obligations with funds from internally generated liquidity.

The five-year senior unsecured notes, issued on October 28, 2021, matured on Wednesday, October 28, 2026, with an annual coupon rate of 7.625 per cent, payable semi-annually.

The bank said the repayment was funded through its liquidity management strategy, backed by a dedicated sinking fund established to provide for the maturing obligation. This enabled it to meet the repayment commitment while maintaining normal business operations and complying with applicable regulatory liquidity requirements.

In a statement announcing the development, the bank’s Managing Director and Chief Executive Officer, Dr Nneka Onyeali-Ikpe, said the successful redemption reflected its disciplined financial management and commitment to honouring its obligations to investors and other stakeholders.

She said the bank had anticipated the maturity of the Eurobond from the outset and made adequate provisions to ensure that the repayment would be completed without disrupting its operations.

“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,” Onyeali-Ikpe said.

She added that the repayment reflected the bank’s commitment to responsible financial management and the fulfilment of its obligations to investors.

The transaction also marks another milestone in Fidelity Bank’s participation in the international debt capital market. The 2021 Eurobond was its third issuance, following earlier transactions in 2013 and 2017, through which the bank raised $300 million and $400 million respectively.

According to the bank, the 2021 offering attracted investor orders exceeding $700 million, surpassing the $400 million it sought to raise and demonstrating the level of demand for the instrument at the time of issuance.

The latest development comes after the completion of the bank’s recapitalisation programme ahead of the regulatory deadline. Fidelity Bank said its capital-raising efforts increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks with international authorisation.

The bank said the successful repayment, alongside the recapitalisation, underscored its approach to liquidity management, capital planning and financial obligations as it continues to pursue its growth objectives in domestic and international markets.