Fidelity Bank Plc, a leading Bank, has successfully issued 10 years N41.21 billion in fixed-rate unsecured subordinated bond at an 8.5 percent coupon rate due in 2031.
The bond issuance, which was fully subscribed is a landmark achievement in Nigeria.
Commenting on the importance of the bond issuance, Chairman, Fidelity Bank, Mustapha Chike-Obi, said: “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.”
Also speaking, Chief Executive Officer, Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, said that proceeds from the transaction would be used to enhance growth in the issuer’s risk assets in the Small and Medium Enterprises, SME and retail business as well as investments in technology & retail infrastructure.
Specifically, She said: “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.”
Already, the issue has been assigned a rating of A- by Agusto, and A by Datapro and will be listed on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange Limited.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria, with over 5 million customers who are serviced across its 250 business offices and various other digital banking channels.
Focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital-based retail banking strategy which has resulted in exponential growth in savings deposits over the last Six (6) years, with over 40 percent customer enrollment on the Bank’s flagship mobile/internet banking products.
Quoted on the Nigerian Stock Exchange (NSE), Fidelity Bank Plc began operations in 1988 as a Merchant Bank. In 1999, it converted to Commercial Banking and then became a Universal Bank in February 2001. The current enlarged Fidelity Bank is a result of the merger with the former FSB International Bank Plc and Manny Bank Plc in 2005.
