Fidelity Bank’s $500m war chest for trade finance  

Fidelity Bank, one of Nigeria’s leading tier-2 lenders, has said it is considering raising $500 million through an unsecured note issuance in the international debt capital market to support its trade finance business. The unsecured and unsubordinated notes are proposed to be listed on the Irish Stock Exchange and traded on its regulated market.

The financial institution in a statement filed to the Nigerian Exchange (NGX) noted that the proceeds from the capital raising are intended to be used for general corporate purposes, including supporting its trade finance business. The move is being interpreted to show that Nigerian banks have begun a journey into the Eurobond market ahead of the implementation of the Basel III agreement.

The proposed aggregate offer of $500 million due in 2026, when issued, will rank pari passu without preference with all other unsecured and unsubordinated obligations of the bank. The bank also said it intends to list the notes on the Irish Stock Exchange with the expectation that the notes will be traded on its regulated market.

It said the Securities and Exchange Commission has offered a ‘no objection’ to the note while the final decision on the issue will be subject to finalising the necessary transaction documentation and prevailing market conditions.