Fidelity Bank Plc has redeemed its $400m Eurobond at maturity, fulfilling its debt obligations to international investors and reinforcing its credibility in the global capital market.
The bank announced that it had fully repaid the five-year senior unsecured notes issued on October 28, 2021, which matured on October 28, 2026.
The Eurobond carried an annual coupon rate of 7.625 per cent, payable semi-annually. According to the bank, all scheduled interest payments were made throughout the instrument’s tenure, culminating in the full repayment of the principal and outstanding interest at maturity.
Fidelity Bank said the redemption was funded from internally generated liquidity as part of its proactive approach to managing financial obligations and maintaining a strong liquidity position.
The bank explained that it had established a dedicated sinking fund to progressively set aside resources for the repayment, enabling it to meet the maturity obligation without disrupting normal business operations.
The funding strategy, it added, ensured that the repayment was executed while maintaining compliance with applicable regulatory liquidity requirements.
Commenting on the development, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr/Mrs Nneka Onyeali-Ikpe, said the successful redemption demonstrated the bank’s commitment to prudent financial management and its obligations to investors.
She said, “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.”
Onyeali-Ikpe added that the bank had anticipated the maturity from the outset and made adequate provisions to meet the obligation.
“We planned accordingly, which reflects our commitment to responsible financial management,” she said.
The repayment further strengthens Fidelity Bank’s record in the international debt capital market. The 2021 transaction was its third Eurobond issuance, following earlier offerings in 2013 and 2017, through which it raised $300m and $400m, respectively.
Investor demand for the 2021 offering was strong, with orders exceeding $700m, reflecting significant interest in the bank’s international debt instrument.
The successful redemption also follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline.
The bank said its capital-raising efforts increased its eligible regulatory capital to approximately ₦533bn, exceeding the ₦500bn minimum capital requirement for banks with international authorisation.
The development comes amid heightened attention to capital adequacy, liquidity management and financial resilience in Nigeria’s banking industry as lenders position themselves for sustained growth.
Fidelity Bank said the successful repayment demonstrated its capacity to manage significant financial obligations while maintaining operational stability and pursuing its strategic objectives in domestic and international markets.
The bank added that its capital position, liquidity planning and disciplined financial management would continue to support its growth ambitions and reinforce confidence among investors and other stakeholders.
