Fidelity Bank Plc has successfully repaid its $400 million Eurobond following the maturity of the five-year debt instrument, reaffirming its commitment to meeting financial obligations and strengthening investor confidence in the bank.
The Eurobond, which was issued on October 28, 2021, matured on October 28, 2026. It carried an annual interest rate of 7.625 per cent, with interest payments made every six months.
The bank confirmed that it fulfilled all scheduled interest payments throughout the five-year period and has now completed the repayment of the entire $400 million principal, alongside the final accrued interest.
According to the bank, the repayment was financed through internally generated funds as part of its strategic liquidity management plan.
Fidelity Bank explained that it had established a dedicated sinking fund to gradually set aside resources for the repayment ahead of the maturity date. This arrangement enabled the bank to meet its financial commitment without disrupting its normal business operations or affecting its compliance with regulatory liquidity requirements.
Commenting on the development, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe, said the successful redemption demonstrated the bank’s financial discipline, strong balance sheet management and commitment to honouring its obligations to investors.
She explained that the bank had anticipated the maturity of the Eurobond from the beginning and put appropriate measures in place to ensure a smooth repayment.
According to her, the development reflects the strength of the bank’s financial position and its determination to maintain responsible financial management while delivering on its promises to stakeholders.
The successful repayment also adds to Fidelity Bank’s track record in the international debt capital market.
The bank’s 2021 Eurobond transaction was its third international bond issuance, following earlier offerings in 2013 and 2017, through which it raised $300 million and $400 million respectively.
The 2021 offer attracted investor orders exceeding $700 million, indicating strong interest and confidence in the bank’s financial standing and prospects.
The latest development comes after Fidelity Bank successfully completed its recapitalisation programme ahead of the regulatory deadline set for Nigerian banks.
Through its capital-raising efforts, the bank increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks operating with international authorisation.
The completion of the Eurobond repayment and recapitalisation programme highlights Fidelity Bank’s efforts to strengthen its financial position, maintain adequate liquidity and support its long-term growth plans.
It also reinforces the bank’s ability to meet its obligations to both local and international investors while continuing to expand its operations and pursue strategic business opportunities across domestic and international markets.
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