Fidelity Bank Plc has repaid its $400 million Eurobond in full at maturity, meeting its principal and interest obligations after five years and using internally generated funds to settle the debt.
The senior unsecured notes, issued on October 28, 2021, matured on October 28, 2026, with an annual interest rate of 7.625 per cent, payable every six months.
The bank said it used a dedicated sinking fund to provide for the repayment progressively, enabling it to meet the obligation while maintaining normal operations and complying with regulatory liquidity requirements.
Managing Director and Chief Executive Officer of Fidelity Bank, Nneka Onyeali-Ikpe, said the repayment reflected the bank’s financial management discipline 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 redemption adds to the bank’s record in international debt markets. The 2021 transaction was its third Eurobond issuance, following offerings of $300 million in 2013 and $400 million in 2017.
Investor orders for the 2021 offer exceeded $700 million, according to the bank.
The repayment follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline. The bank said its eligible regulatory capital rose to approximately ₦533 billion, above the ₦500 billion minimum requirement for banks with international authorisation.
The bank said the repayment and recapitalisation strengthened its capacity to meet financial obligations while pursuing growth in domestic and international markets.