The bond issuance which was fully subscribed given that
total investor interest and commitments in the bonds were N56.6 billion, 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.
In December, the bank had announced plans to issue fixed
income securities with 10-year tenor to support the growth and development of
Small Medium Enterprises (SMEs), Retail Business as well as its technology
infrastructure. The bank conducted the debt issuance under its registered N100
billion bond issuance programme.
The bonds are unsecured and subordinated, which will qualify
as Tier II Capital in line with the Central Bank of Nigeria (CBN) Guidance
Notes on Regulatory Capital for commercial banks in Nigeria.
Speaking on the significance and success of the bond
issuance, Fidelity Bank Chairman, Mustapha Chike-Obi said that the bond
issuance further demonstrates our 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, Fidelity Bank CEO, 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, Onyeali-Ikpe added is in line with the bank’s Tier I
aspirations. According to her, our business fundamentals have 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.
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 7 consecutive years while over 50 percent
of its customers are now enrolled on its digital platforms.
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