Despite Nigeria’s ongoing forex scarcity and a series of economic downturns, Fidelity Bank, a leading tier II bank, redeemed its 5-year $400 million Eurobonds on Monday.
The bank disclosed this in a statement signed by Ezinwa Unuigboje and accessed by Investors King via the Nigerian Exchange Limited disclosure platform.
The five years old Eurobonds were issued on October 17, 2017, with a tender offer for the refinancing of Fidelity Bank’s $300 million senior unsecured notes which was issued in 2018.
This transaction was the biggest offer ever issued by a Nigerian institute as it combined new issuance and liability management.
The transaction having achieved an oversubscribed order book of $630 million was managed by Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited.
The Eurobonds on its maturity date, October 17, 2022, accumulate to the sum of $421 million, which covers the actual amount and six months coupon interest in line with the trust deeds.
Mrs. Nneka Onyeali-Ikpe, the Chief Executive Officer of Fidelity Bank said despite forex scarcity and the current economic situation in the country, the bank was able to redeem the notes. She claimed this proves the resilience of the bank’s balance sheet and stability.
In 2020, Investors King reported that Fidelity Bank facilitates 60% of all bureau de change foreign exchange transactions in Nigeria. Feet even tier I banks can’t attain.
According to the President of the Association of Bureaux De Change of Nigeria (ABCON), Mr. Aminu Gwadabe, Fidelity Bank process about N1.4 trillion per annum in forex transactions.
Access Holdings Posts 52.6% Profit for the First Half of the Year
Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23
Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.
The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.
These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.
The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.
Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.
The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.
These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.
Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”
He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”
Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting
The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.
Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.
In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”
While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.
President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.
The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.
The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.
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