Fidelity Bank Concludes N41.21bn bond issuance

Fidelity Bank Plc has successfully completed the issuance of its 10-year N41.21bn bond.

The fixed-rate unsecured subordinated bond was issued at 8.5 percent and is due in 2031, the bank said in a statement late Sunday, under the title ‘Fidelity Bank Plc successfully issued the largest ticket Tier II local bonds in Nigeria’.

“The bond issuance, which was fully subscribed, given that total investor interest and commitments in the bonds were N56.6bn, adds to the impressive portfolio of landmark transactions structured by the bank, and underscores its capacity to successfully execute debt capital market transactions,” Fidelity said.

 

“The transaction is a landmark achievement in the Nigerian domestic debt market for being the largest corporate bonds ever issued by a Nigerian Bank including the deposit money banks and merchant banks etc,” it said.

The debt issuance was done under Fidelity’s registered N100bn bond issuance programme, the bank explained.

 

Fidelity had in  December announced plans to issue fixed-income securities with a 10-year tenor to support the growth and development of Small and Medium Enterprises, retail business as well as its technology infrastructure.

 

It said that the unsecured and subordinated bonds qualify as Tier II Capital in line with the Central Bank of Nigeria guidance notes on regulatory capital for commercial banks in Nigeria.

 

Mustapha Chike-Obi, Chairman of Fidelity Bank said that the bond issuance further demonstrated the bank’s confidence in Nigeria’s debt market.

“It also validates the continued investor confidence in our corporate strategy and aspirations, strong corporate governance structure and solid and stable executive management team with a robust history of superior financial performance and returns,” he said.

Also commenting on the ban issuance, Chief Executive Officer of the bank, Nneka Onyeali-Ikpe, explained that proceeds from the bond sale would be used to support growth in the issuer’s risk assets in SME and retail business as well as investments in technology and retail infrastructure.

 

“The successful bond issuance highlights the confidence in the Fidelity brand, as well as our capability to expand our funding sources, and deliver innovative financial services to our esteemed customers,” she said.