BY BANYO TEMITAYO
FIDELITY Bank Plc has successfully issued N41.21billion in fixed rate unsecured subordinated bond, with a 10-year tenor, at 8.5 per cent coupon rate, due in 2031.
The bank said the bond issuance was fully subscribed, noting that total investor interest and commitments in the bonds were N56.6billion.
This, it said, added to the impressive portfolio of landmark transactions structured by Fidelity Bank and underscored 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.
In December, the bank had announced plans to issue fixed income securities with a 10-year tenor to support the growth and development of Small Medium Enterprises, Retail Business as well as its technology infrastructure. It conducted the debt issuance under its registered N100billion bond issuance programme.
Speaking on the significance and success of the bond issuance, Chairman, Fidelity Bank, Mustapha Chike-Obi, said 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 explained.
In her comments, 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 & retail infrastructure.
This, she said, was in line with the bank’s Tier I aspirations, noting that the bank’s 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 issue was assigned a rating of A- by Agusto, and A by Datapro and will be listed on both the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange Limited.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria, with over 5.7 million customers who are serviced across its 250 business offices and various other digital banking channels.
The Bank is focused on select niche corporate banking sectors, Small and Medium Enterprises (SMEs) and is rapidly implementing a digital-based retail banking strategy which has resulted in annual double-digit growth in savings deposits in at least seven consecutive years while over 50 per cent of its customers are now enrolled on its digital platforms.
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