Fidelity Bank Floats $500m Notes On Irish Stock Market
Fidelity Bank Plc has disclosed plans to raise $500million from the Irish Stock Exchange through an unsecured notes issuance due in 2026.
In a release on Monday announcing the fund raising, the Tier 2 deposit money bank stated that the Securities and Exchange Commission (SEC) has not objected to the planned transaction.
However, the statement quoted the company secretary, Ezinwa Unuighoje, as saying that the final decision to issue the Notes is subject to finalising the necessary transaction documentation and prevailing market conditions.
The statement disclosed that the proceeds of capital raise would be used for general corporate purposes including supporting its trade finance business.
The statement reads: “The proposed aggregate offer size is U.S.$500,000,000 due 2026, which will when issued rank pari passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank.
The Company intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the Transaction.
“In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of planned investor meetings with respect to the Transaction scheduled to commence today October 18 2021.”
The statement added, “the final decision to issue the Notes will however be subject to finalising the necessary Transaction documentation and prevailing market conditions.
With this announcement, Fidelity Bank Plc joined a growing list of lenders in 2021 seeking more funds via the international capital market.
In June, Ecobank Transnational Incorporated (“ETI”) announced the launch of $350 million Tier 2 Sustainability Notes, with its maturity date set at June 2031.
According to Ecobank, the bond which would be listed on the London Stock Exchange, would be used to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework.
Also in late September, Access Bank Plc launched a $500 million Senior Unsecured Eurobond, under its $1.5 billion Global Medium-Term Note Programme.
The bank stated that the net proceeds from the Eurobond subscription launched on September 15th would be used to provide medium term funding and boost the capacity of the tier -1 financial institution. .
According to Access Bank, the offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over US$1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.
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