Fidelity Bank Pays Back $400 Million Eurobond in Full, Boosts Investor Trust

Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe

Fidelity Bank Plc has successfully redeemed its $400 million Eurobond at maturity, meeting its full repayment obligation to international investors.

The five-year senior unsecured notes were issued on 28 October 2021 and matured on 28 October 2026. The bond carried an annual coupon of 7.625 percent, payable every six months.

According to the bank, all coupon payments were made as scheduled throughout the life of the instrument, with the final repayment covering both principal and outstanding interest settled in full upon maturity.

The repayment was funded from the bank’s internal liquidity as part of its proactive liquidity management approach. Fidelity Bank said it created a dedicated sinking fund from the outset to progressively provide for the maturity, which allowed it to honour the obligation while maintaining normal operations and complying with regulatory liquidity requirements.

Speaking on the development, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, said the successful redemption shows the strength of the bank’s balance sheet and its culture of financial discipline.

She noted that the bank anticipated the maturity from the day the bond was issued and planned accordingly, adding that honouring obligations to investors remains a core part of the bank’s commitment to stakeholders.

The transaction represents Fidelity Bank’s third outing in the international debt capital market. The bank had earlier raised $300 million in 2013 and $400 million in 2017. The 2021 issuance attracted orders in excess of $700 million, indicating strong investor appetite for the bank’s credit.

The redemption comes shortly after the bank completed its recapitalisation exercise ahead of the regulatory deadline. Through its capital raising programme, Fidelity Bank grew its eligible regulatory capital to about N533 billion, above the N500 billion minimum capital requirement for banks with international authorisation.

The bank said the completion of the Eurobond repayment and the recapitalisation programme underscores its strong capital position, prudent liquidity management and disciplined execution. It added that these milestones reinforce its ability to meet financial obligations while pursuing growth plans in Nigeria and other markets.