Fidelity Bank MD Says Lender Remains Strong After Redeeming $400m Eurobond

Fidelity Bank remains strong with enough liquidity to back up its position among Nigeria’s top commercial banks, the managing director and chief executive of the bank, Nneka Onyeali-Ikpe has said.

The bank’s chief executive spoke after the lender announced that it has successfully redeemed the $400 million Eurobond Notes due October 17, 2022.

Onyeali-Ikpe said the redemption of the bond is a testimony to the bank’s solid liquidity position among its peers.

“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,” she said.

On October 17, 2017, the bank successfully issued a US$400 million 5-year Eurobond. The transaction also included a Tender Offer (the “Tender Offer” or “Offer”) for the refinancing of the Bank’s US300million Senior Unsecured Notes issued in May 2018.

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

The transaction which was managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited achieved an oversubscribed order book of $630million. Upon final maturity of the Eurobond, noteholders received a total of US$421 million covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds.

Fidelity Bank is one of the leading financial institutions in Nigeria. According to its interim audited result for the mid-year 2022, the Bank reported strong financial ratios with a capital base of N3.7trillion, PBT of N25bn and a return on equity (ROE) of 15.4% evidencing the efficient management of the bank’s assets.

In recognition of its commitment to product innovation and strong corporate governance, the Bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank also won the 2022 Platinum Award of the Development Bank of Nigeria for its leading role in disbursing loans to focused sectors.