By Innocent Obasi
Nigeria’s leading tier-2 lender Fidelity Bank Plc. on Monday announced the redemption of its $400 million Eurobond notes due October 17, 2022.
The $400 million 5-year Eurobond was successfully issued by the bank on October 17, 2017. The transaction also included a Tender Offer (the “Tender Offer” or “Offer”) for the refinancing of the bank’s $300 million Senior Unsecured Notes issued in May 2018. It was the largest combined new issue & liability management offering ever by a Nigerian issuer and was well received by analysts and investors.
The transaction was managed by a group of companies that included Citigroup Inc., Renaissance Capital, and Standard Bank Group Limited, and it achieved an oversubscribed order book of $630 million.
Upon final maturity of Eurobond, note holders received a total of US$421 million, which covered the principal sum and the accrued six-month coupon in accordance with the Trust Deeds that had been executed.
“The liquidation of the notes despite the strong headwinds in the domestic economy – especially when viewed against the backdrop of short dollar supply – is a testament to the strong liquidity position of the bank and the resilience of our balance sheet,” said Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank.
