By JKNewsMedia
MEETING ITS $400 million debt obligation in full, the lender has completed repayment of its five-year Eurobond using internally generated funds set aside through a dedicated sinking fund, while maintaining normal operations and regulatory liquidity requirements.
JKNewsMedia.com reports that the five-year senior unsecured notes, issued on 28 October 2021, matured on 28 October 2026 with an annual coupon of 7.625 per cent, payable every six months.
The bank said it met all scheduled interest payments throughout the instrument’s tenure and has now settled the outstanding principal and accrued interest in full.
It also said it funded the repayment through a dedicated sinking fund established as part of its forward-looking liquidity management strategy as the arrangement enabled the bank to prepare for the maturity while sustaining normal business operations and complying with applicable regulatory liquidity requirements.
Managing Director and Chief Executive Officer, Dr Nneka Onyeali-Ikpe, said the repayment demonstrated the bank’s financial discipline and commitment to meeting its obligations to investors and other stakeholders.
“This successful redemption demonstrates the strength of our franchise, the discipline of our balance sheet management and our commitment to honouring our obligations to investors and other stakeholders,” she said.
Onyeali-Ikpe added that the bank anticipated the maturity from the outset and planned accordingly, reflecting its approach to responsible financial management.
The repayment adds to Fidelity Bank’s record in international debt markets. The 2021 transaction was its third Eurobond issuance, following offerings in 2013 and 2017, through which it raised $300 million and $400 million respectively.
The 2021 offer attracted investor orders exceeding $700 million, indicating strong demand for the bank’s international debt offering.
The redemption follows Fidelity Bank’s completion of its recapitalisation programme ahead of the regulatory deadline. The bank said its capital-raising efforts increased eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum requirement for banks with international authorisation.
The bank said the milestones reflected its capital position, liquidity management and ability to meet financial obligations while pursuing growth objectives in domestic and international markets.
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