Connect with us

Hi, what are you looking for?


Fidelity Bank Records Success in N41.21Bn Bond Issuance

Fidelity Bank Plc said it has successfully issued 10-year N41.21bn in fixed rate unsecured subordinated bond at a 8.5 per cent coupon rate due in 2031.

It disclosed this in a statement on Sunday titled ‘Fidelity Bank Plc successfully issued the largest ticket Tier II local bonds in Nigeria’.

The bank stated, “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.

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

The bank conducted the debt issuance under its registered N100bn bond issuance programme.

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

Speaking on the significance and success of the bond issuance, Mustapha Chike-Obi, chairman, 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 robust history of superior financial performance and returns,” Obi said.

In her comments, Mrs Nneka Onyeali-Ikpe, chief executive officer, Fidelity Bank, noted that proceeds from the transaction would be utilised to support growth in the issuer’s risk assets in SME and retail business as well as investments in technology and retail infrastructure.

This, Onyeali-Ikpe added, was in line with the bank’s Tier I aspirations.

According to her, its business fundamentals had remained strong despite the challenging economic environment occasioned by the coronavirus pandemic and the attendant recession.

“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 added.

The bank stated that the issue was assigned a rating of A- by Agusto, and A by Datapro and would be listed on both the Nigerian Stock Exchange and FMDQ Securities Exchange Limited.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria, with over 5.7 million customers who were serviced across its 250 business offices and various other digital banking channels.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


You May Also Like


Exciting news for smartphone enthusiasts! TECNO has officially unveiled the highly anticipated CAMON 30 series, setting a new standard for innovation and excellence in...


Allen Onyema, chief executive officer of Air Peace, has claiimed that some airlines are conspiring to take his company out of business by underpricing...


Mswitch Creative Media Hub is proud to announce the launch of an ambitious talent development initiative to position 5,000 young Nigerians for global post-production...


Abdul-Azeez Suleiman, spokesperson of the forum, disclosed this in a recent interview with The Guardian. According to him, the recent abduction of school children...