Fidelity Bank redeems $400m Eurobond at maturity

Business, Corporate Affairs

ABUJA, Nigeria (Agency Report) — Fidelity Bank Plc has redeemed its $400 million five-year senior unsecured notes at maturity, reaffirming its commitment to meeting its obligations to investors and strengthening its record in the international debt capital markets.

The redemption was disclosed in a statement issued on Wednesday by Adebowale Banzi, Team Lead, Media and Internal Communications at Fidelity Bank.

Banzi said the Eurobond, issued on October 28, 2021, matured on October 28, 2026, and carried an annual coupon rate of 7.625 per cent, payable semi-annually.

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He said the bank had met all scheduled coupon payments throughout the life of the instrument and fulfilled its final repayment obligation in full, covering both the principal and accrued interest.

According to him, 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,” he said.

Commenting on the development, Fidelity Bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, said the successful redemption reflected the bank’s disciplined financial management and commitment to meeting its obligations.

“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,” she said.

“We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management.”

Banzi said the redemption further strengthened the bank’s record in the international debt capital markets.

He noted that the 2021 issuance was Fidelity Bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, through which the bank raised $300 million and $400 million, respectively.

The 2021 offer attracted investor orders exceeding $700 million, reflecting strong demand for the bank’s international debt offering, he added.

Banzi also said the successful redemption followed the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline.

According to him, the bank’s 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 completion of these milestones underscores Fidelity Bank’s strong capital position, prudent liquidity management and disciplined approach to financial execution.

“It also reinforces the bank’s capacity to meet its financial obligations while pursuing its strategic growth objectives across domestic and international markets,” he said.

The redemption marks the settlement of the bank’s $400 million debt obligation issued in 2021 and highlights its approach to managing scheduled repayments while maintaining liquidity and regulatory compliance.