Fidelity Bank Plc has redeemed its $400 million Eurobond at maturity, fulfilling its principal and interest obligations to investors and reinforcing its position in the international debt capital market.
The five-year Senior Unsecured Notes, issued on October 28, 2021, matured on October 28, 2026, with an annual coupon of 7.625 per cent, payable semi-annually.
In a statement, the bank said it met all scheduled coupon payments throughout the period and had now fulfilled its final repayment obligation, covering both the principal and accrued interest.
The redemption was funded through internally generated liquidity, supported by a dedicated sinking fund established as part of the bank’s forward-looking liquidity management strategy.
According to the bank, the arrangement enabled it to progressively provide for the maturing obligation without disrupting normal business operations or breaching applicable regulatory liquidity requirements.
Commenting on the development, Fidelity Bank’s Managing Director and Chief Executive Officer, Dr Nneka Onyeali-Ikpe, said the successful redemption demonstrated the bank’s financial discipline and commitment to meeting its obligations.
“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,” she said.
The 2021 Eurobond was Fidelity Bank’s third international debt issuance, following earlier transactions 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 debt instrument.
The latest development follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline, which raised its eligible regulatory capital to approximately N533 billion, above the N500 billion minimum requirement for banks with international authorisation.
The bank said the milestones underscored its strong capital position, prudent liquidity management and capacity to meet financial obligations while pursuing its growth objectives in domestic and international markets.
