By Peace Udugba — The Daily Torch Media
Fidelity Bank Plc has redeemed its $400 million Eurobond in full at maturity, reaffirming its commitment to meeting its financial obligations and strengthening its track record in the international debt capital markets.
The five-year senior unsecured notes, issued on October 28, 2021, matured on October 28, 2026, with an annual coupon rate of 7.625 per cent, payable semi-annually.
The bank said it had met all scheduled coupon payments throughout the life of the instrument and fulfilled its final repayment obligation, covering the principal and accrued interest.
According to the bank, the redemption was funded from internally generated liquidity as part of its proactive liquidity management strategy.
It explained that a dedicated sinking fund was established to make provisions for the maturing obligation, enabling it to meet its repayment commitment while maintaining normal business operations and complying with applicable regulatory liquidity requirements.
Commenting on the development, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe, said the successful redemption reflected the bank’s disciplined financial management and commitment to fulfilling its obligations to investors.
She said, “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.
“We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management.”
The redemption further strengthens Fidelity Bank’s record in the international debt capital markets.
The 2021 issuance was the bank’s third Eurobond transaction, following earlier issuances 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 successful repayment also follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline.
The bank’s capital-raising efforts increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks with international authorisation.
The completion of these milestones highlights Fidelity Bank’s capital position, liquidity management and financial discipline as it continues to pursue its strategic growth objectives across domestic and international markets.
