Fidelity Bank Redeems $400m Eurobond In Full, Strengthens Investor Confidence

Fidelity Bank Plc has fully redeemed its $400 million five-year senior unsecured Eurobond at maturity, reinforcing its commitment to meeting financial obligations and strengthening its reputation in the international debt capital market.

Fidelity Bank Plc has fully redeemed its $400 million five-year senior unsecured Eurobond at maturity, reinforcing its commitment to meeting financial obligations and strengthening its reputation in the international debt capital market.

The bond was issued on October 28, 2021, and matured on October 28, 2026. It carried an annual interest rate of 7.625 per cent, with coupon payments made every six months. The bank reportedly met all scheduled interest payments throughout the five-year period before settling the outstanding principal and accrued interest in full.

According to Bush Radio Academy, Fidelity Bank funded the repayment through internally generated liquidity as part of its proactive financial management strategy. The bank also established a dedicated sinking fund, allowing it to set aside resources progressively ahead of the maturity date and meet its obligations without disrupting normal business operations or breaching applicable regulatory liquidity requirements.

Commenting on the development, the bank’s Managing Director and Chief Executive Officer, Dr Nneka Onyeali-Ikpe, said the successful redemption demonstrated the institution’s disciplined financial management and commitment to honouring its obligations to investors and other stakeholders.

She explained that the bank had anticipated the maturity of the Eurobond from the outset and made the necessary preparations to ensure that repayment was completed as scheduled.

The latest redemption further strengthens Fidelity Bank’s record in the international debt market. The 2021 transaction was the bank’s third Eurobond issuance, following earlier offerings in 2013 and 2017, through which it raised $300 million and $400 million, respectively. The 2021 offer reportedly attracted investor orders exceeding $700 million, indicating strong demand for the bank’s international debt instrument.

The repayment also comes after Fidelity Bank completed its recapitalisation programme ahead of the applicable regulatory deadline. The exercise increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks operating with international authorisation.

The successful completion of the Eurobond repayment and recapitalisation programme highlights the bank’s approach to liquidity management, capital planning and financial obligations. These developments are expected to support its continued pursuit of growth opportunities in Nigeria and international markets while maintaining its commitments to investors and other stakeholders.