Finance

Fidelity Bank redeems $400m eurobond notes

Fidelity Bank shareholders to get 60 kobo dividend

Fidelity Bank plc has announced  the redemption of its $400 million five year Eurobond Notes which was due yesterday, Monday October 17, 2022.

The $400 million Eurobond which the bank issued five years ago also included a Tender Offer for the refinancing of the Bank’s $300million Senior Unsecured Notes issued in May 2018.

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The transaction was the largest combined new issue & liability management offering ever by a Nigerian issuer and was well received by analysts and investors.

Managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited, the transaction had achieved an oversubscription order book of $630million. Upon final maturity of the Eurobond, noteholders received a total of $421 million covering the principal amount and the accrued six months coupon in line with the executed Trust Deeds.

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Managing Director and Chief Executive of Fidelity Bank, Nneka Onyeali-Ikpe, in a statement 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.”

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