Fidelity Bank plc has announced the redemption of its $400 million five-year Eurobond Notes which was due yesterday, Monday October 17, 2022.
The $400 million Eurobond, which the bank issued five years ago, also included a Tender Offer for the refinancing of the Bank’s $300million 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.
Managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited, the transaction had achieved an oversubscription order book of $630million. Upon final maturity of the Eurobond, noteholders received a total of $421 million covering the principal amount and the accrued six months coupon in line with the executed Trust Deeds.
Managing director and chief executive of Fidelity Bank, Nneka Onyeali-Ikpe, in a statement, said: “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.”
According to its interim audited result for the mid-year 2022, the bank reported strong financial ratios with a capital base of N3.7 trillion, profit before tax of N25 billion and a return on equity (ROE) of 15.4 per cent evidencing the efficient management of the bank’s assets.
