Not Even Forex Scarcity Could Hold Fidelity Bank Down, Pays Off $400 Million 5 Years Eurobonds

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.