Fidelity Bank Plc has fully redeemed its US$400 million Eurobond at maturity, telling shareholders and the Nigerian Exchange (NGX) that it repaid the outstanding principal and final coupon in full on October 28, 2026.
In a statement, the bank said the repayment came from internally generated liquidity, with a dedicated sinking fund set aside progressively for the maturing debt, so day-to-day operations and regulatory liquidity requirements were unaffected.
Managing Director and CEO Nneka Onyeali-Ikpe said the redemption reflected the bank’s balance-sheet discipline. “We anticipated this maturity from the outset,” she said, adding that the bank had planned accordingly.
The 2021 deal
The five-year note was settled on October 28, 2021, with Citi, J.P. Morgan and Afreximbank as joint lead managers. It was priced at a re-offer yield of 7.875% with a 7.625% coupon. Investor orders exceeded US$700 million, and the bank says it met every coupon payment over the life of the note.
It was Fidelity’s third Eurobond, following issues in 2013 and 2017 that raised $300 million and $400 million respectively. The 2017 note was repaid in October 2022, when holders received about $421 million covering principal and the final half-year coupon.
The bank said the redemption follows the completion of its recapitalisation programme ahead of the regulatory deadline, with eligible regulatory capital of about N533 billion against the N500 billion minimum for banks with international authorisation.
Administrator and Writer
