Fidelity Bank Redeems $400m Eurobond Notes
Fidelity Bank Plc, Nigeria’s Tier 2 lender says it has redeemed its five-year $400 million Eurobond Notes due October 17, 2022.
A release by the commercial bank on Monday stated that the transaction also included a Tender Offer (the “Tender Offer” or “Offer”) for the refinancing of the Bank’s S300 million Senior Unsecured Notes issued in May 2018.
According to the bank, the transaction was the largest combined new issue & liability management offering ever by a Nigerian issuer and was well received by analysts and investors.
The release further stated that the transaction managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited achieved an oversubscribed order book of $630 million.
“Upon final maturity of the Eurobond, noteholders received a total of US$421 million covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds,” the bank disclosed.
Responding to the development, the bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, said “the liquidation of the notes despite the strong headwinds in the domestic economy – especially when viewed against the backdrop of short dollar supply, is a testament to the strong liquidity position of the bank and the resilience of our balance sheet”.
An analysis of the bank’s interim audited result for the mid-year ended June 30, 2022, shows the Bank reported strong financial ratios in most of the financial indices.
The capital base grew to N3.7 trillion, just as the profit before tax increased to N25 billion. Return on equity (ROE) which indicates profitability of its shares traded on Nigerian Exchange stood at 15.4 percent, indicating the efficient management of the bank’s assets.
In recognition of its commitment to product innovation and strong corporate governance, the Bank was recently recognized as the Best SME Bank in Nigeria 2022 by the Global Banking & Finance Awards.
The bank also won the 2022 Platinum Award of the Development Bank of Nigeria for its leading role in disbursing loans to focused sectors.
Furthermore, it was recognized as the 2021“Fastest Growing Bank” in Nigeria and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Award.
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