Fidelity Bank Plc says 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, the Chairman, Fidelity Bank, Mustapha Chike-Obi, 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, the Chief Executive Officer, Fidelity Bank, Mrs Nneka Onyeali-Ikpe, 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.
Woman stabs 17-year-old daughter to death in Ogun
Bauchi uncovers 1,115 ghost workers, saves N763m
Man bags 104 years jail term for child trafficking in Kano
Gunmen kidnap Benue commissioner’s wife
Why my wife quit medical profession – Williams Uchemba
JUST IN: Arsenal sign Ben White from Brighton on five-year deal
Kaduna govt files fresh charges against El-Zakzaky
BBNaija: Housemates sideline me because of my age, says Saskay
Sound Sultan: 18 things to know about throat cancer
Court acquits ex-NBA President of N1.4bn fraud charge
Meet Igbo lady with Yoruba facial marks who was told will die if she looked in the mirror
VIDEO: DSS parades 13 suspects, recovered arms from Sunday Igboho’s residence
Igboho, Kanu: Who is naive now? BY Adekunle Ade-Adeleye
Nnamdi Kanu: A ‘circled dot’ in lion’s den BY Arogbonlo Israel
FG planted guns in Sunday Igboho’s house – Deji Adeyanju
Kenya not aware of Nnamdi Kanu’s arrest – Spokesperson
VIDEO: Gani Adams rallies Benin Republic monarchs for Sunday Igboho
FIDIO: Ǹjẹ́ Gbogbo Akitiyan Ìjọba Láti Mú Ẹ̀yìn Olóyè Sunday Ìgbòho Balẹ̀ Yìí Tọ́ Àbí Kò Tọ́?
VIDEO: Pastor Tunde Bakare declares National Movement
VIDEO: CCTV footage of nine-year-old suspect setting Prince Ebeano supermarket in Abuja on fire
VIDEO: Bandits release 28 abducted students of Bethel Baptist High School
VIDEO: Ladipo Market traders clash with security operatives
VIDEO: I passed through a lot in Oman, assaulted, owed wages, drugged and deported – Funmilayo Fehintola
VIDEO: Angry indigene calls out road contractor over substandard road project in Edo
Breaking24 hours ago
JUST IN: Robbers invade Nasarawa Finance Ministry, cart away N100m
Entertainment23 hours ago
BBNaija #ShineYaEye: Biggie names Maria, Pere ‘wildcards’
Metro4 hours ago
Flood kills 26, destroys 1,000 houses in Kano – SEMA
Sports23 hours ago
Croatia fire Suker as Football Federation chief
News23 hours ago
Amotekun loses seven operatives in eight months – Makinde
Metro9 hours ago
Ogun residents mob ‘mad man’ caught with N250,000, three iPhones, women underwear
Entertainment19 hours ago
BBNaija: Yousef is irresistible, I really like him – Saskay
News4 hours ago
JUST IN: Murdered Super TV CEO Usifo Ataga laid to rest in Lagos