Fidelity Bank Plc has repaid its $400 million Eurobond, which matured on October 28, 2026, using internally generated funds.
The five-year senior unsecured notes were issued on October 28, 2021, at an annual interest rate of 7.625 per cent, with interest payable every six months.
In a statement, the bank said it met all scheduled interest payments throughout the life of the instrument and had now settled the principal and final interest obligation in full.
“The redemption was funded from internally generated liquidity as part of the Bank’s forward-looking liquidity management strategy,” the bank said.
“Through a dedicated sinking fund, Fidelity Bank progressively provided for the maturing obligation, enabling the Bank to meet its commitment while maintaining business-as-usual operations and compliance with applicable regulatory liquidity requirements.”
Commenting on the development, Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank, said the repayment reflected the lender’s financial management strategy and commitment to meeting its obligations to investors.
“We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management,” she said.
The bank said the repayment further strengthened its track record in the international debt capital market.
The 2021 issuance was Fidelity Bank’s third Eurobond transaction, following earlier offerings in 2013 and 2017, through which it raised $300 million and $400 million, respectively.
According to the bank, the 2021 offering attracted investor orders exceeding $700 million, highlighting demand for the debt instrument.
The repayment comes after Fidelity Bank completed its recapitalisation programme ahead of the Central Bank of Nigeria’s regulatory deadline.
The bank said the capital-raising exercise increased its eligible regulatory capital to approximately N533 billion, exceeding the N500 billion minimum requirement for banks with international authorisation.