Fidelity Bank Plc has repaid its US$400 million five-year senior unsecured notes at maturity, completing the final principal and interest payment and underscoring its ability to meet commitments in international capital markets.
- The Eurobond was issued on 28 October 2021 with a 7.625% annual coupon, paid twice yearly, and reached maturity on 28 October 2026.
- Fidelity Bank made every scheduled interest payment during the notes’ five-year term before settling the full principal amount and accrued interest at maturity.
- The lender financed the repayment with internally generated liquidity under its forward-planning approach to liquidity management.
- A dedicated sinking fund was built up over time to cover the maturing debt, allowing the bank to repay the instrument while continuing normal operations and remaining within applicable regulatory liquidity standards.
Balance-sheet management
Nneka Onyeali-Ikpe, Fidelity Bank’s managing director and chief executive, said the repayment demonstrated the resilience of the bank’s franchise, careful balance-sheet discipline and determination to honour commitments to investors and other stakeholders.
“This repayment shows the strength of our franchise, the discipline of our balance-sheet management and our commitment to meeting our obligations to investors and other stakeholders,” Onyeali-Ikpe said. “We prepared for the maturity from the beginning and planned for it accordingly, reflecting our focus on responsible financial management.”
International funding record
The maturity payment adds to Fidelity Bank’s record in offshore debt markets. The 2021 transaction was its third Eurobond issuance, following offerings in 2013 and 2017 that raised US$300 million and US$400 million, respectively.
Investor demand for the 2021 notes exceeded US$700 million, above the US$400 million eventually issued, signalling substantial appetite for the bank’s international debt securities at the time.
Capital programme completed
The Eurobond repayment comes after Fidelity Bank completed its recapitalisation programme before the relevant regulatory deadline. Its capital-raising exercise lifted eligible regulatory capital to about ₦533 billion, above the ₦500 billion minimum required for banks holding international authorisation.
Together, the recapitalisation and bond repayment highlight the bank’s capital base, liquidity planning and financial execution. They also support its capacity to satisfy financial liabilities while pursuing growth in Nigerian and overseas markets.
