Fidelity Bank Pays Off $400 Million Eurobond on Time

Fidelity Bank Plc has paid off its 5-year $400 million Senior Unsecured Notes as scheduled. This shows the bank's commitment to keeping its promises to investors and its good record in the international debt market.

The Eurobond was issued on 28 October 2021. It matured on 28 October 2026 and had an annual interest rate of 7.625 percent, which was paid every six months. Fidelity Bank made all the required interest payments during the bond's life and has now paid back the full amount, including the principal and interest.

The payment came from money the bank generated internally. This is part of the bank's plan to manage its liquidity effectively. The bank set aside money in a sinking fund to prepare for this payment, allowing it to meet its obligations while continuing normal operations and following the rules on liquidity.

Fidelity Bank’s Managing Director and CEO, Nneka Onyeali-Ikpe, spoke about the payment. She said it shows the bank's careful financial management and commitment to its promises.

"This successful payment shows the strength of our business, the discipline in managing our finances, and our commitment to meeting our promises to investors and stakeholders. We planned for this payment from the beginning, showing our dedication to responsible financial management," Mrs Onyeali-Ikpe said.

Paying off the Eurobond strengthens Fidelity Bank’s standing in the international debt market. The 2021 bond issue was the bank's third Eurobond sale. Earlier sales were in 2013 and 2017, where the bank raised $300 million and $400 million respectively. The 2021 sale saw demand with investor orders topping $700 million, showing strong interest in the bank’s international debt.

This successful bond payment comes after Fidelity Bank completed its recapitalisation plan before the deadline set by regulators. The bank's efforts raised its eligible capital to about N533 billion, which is above the N500 billion minimum required for banks with international licenses.

Completing these steps shows Fidelity Bank’s strong capital position, careful liquidity management, and disciplined financial practices. It also highlights the bank's ability to meet its financial responsibilities while chasing its growth goals both locally and internationally.