Abuja:Fidelity Bank has announced the successful redemption of its 5-Year $400 million Senior Unsecured Notes upon reaching maturity.
According to News Agency of Nigeria, the Eurobond was issued on October 28, 2021, and matured on October 28, carrying an annual coupon rate of 7.625 percent, payable semi-annually. Fidelity Bank confirmed that it met all scheduled coupon payments throughout the bond’s life and has now fulfilled its final repayment obligation, covering both the principal and accrued interest.
The redemption was funded from the bank’s internally generated liquidity as part of its forward-looking liquidity management strategy. Fidelity Bank used a dedicated sinking fund to progressively provide for the maturing obligation, allowing the bank to meet its commitments while maintaining regular operations and compliance with regulatory liquidity requirements.
Mrs. Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank, commented that the successful redemption reflected the bank’s disciplined financial management and commitment to honoring its obligations. She noted that the bank anticipated the bond’s maturity from the outset and planned accordingly, demonstrating responsible financial management.
The bank’s media head added that this redemption strengthens Fidelity Bank’s record in the international debt capital markets. The 2021 issuance was the bank’s third Eurobond transaction, following previous issuances in 2013 and 2017, where the bank raised $300 million and $400 million, respectively. The 2021 offering attracted investor orders exceeding $700 million, indicating strong demand for the bank’s international debt offering.
Banzi noted that the Eurobond redemption followed the completion of Fidelity Bank’s recapitalization program ahead of the regulatory deadline. The bank’s capital-raising efforts increased its eligible regulatory capital to approximately ?533 billion, surpassing the ?500 billion minimum capital requirement for banks with international authorization.
The completion of these milestones underscores Fidelity Bank’s strong capital position, prudent liquidity management, and disciplined financial execution. It also reinforces the bank’s capacity to meet its financial obligations while pursuing strategic growth objectives in both domestic and international markets.