Fidelity Bank Plc is considering raising about $500 million from the international debt capital market, through the issuance of 5-Year unsecured notes, in a bid to support its trade finance business and meet up with its general and working capital requirements.
This is according to a statement signed by the Bank’s Secretary, Ezinwa Unuigboje, and filed with the Nigerian Exchange Limited (NGX).
According to the disclosure, the bank intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. In view of this, the Securities and Exchange Commission has confirmed that it will not object the transaction.
To facilitate the transaction, the bank announced that it will be hosting a series of investors’ meeting which is billed to commence from October 18, 2021. The bank also added that the final decision on whether to proceed with the transaction or not, will be subject to finalising the necessary transaction documentation and prevailing market conditions.
Commenting on the recent development, the recent press release issued by the firm read: ‘’Fidelity Bank Plc (the ‘’Bank’’) is considering raising capital from the international debt capital market through an unsecured notes issuance, proceeds of which are intended to be used for general corporate purposes including supporting its trade finance business (the ‘’Transaction’’).
The proposed aggregate offer size is U.S.$500,000,000 (Five Hundred Million United States Dollar), due 2026, which will when issued rank parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank (the ‘’Notes’’). The Company intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the Transaction.
In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of Planned investor meetings with respect to the Transaction scheduled to commence today October 18, 2021.’’
Recall that similarly, Access Bank had recently concluded the issuance of a 5-Year senior unsecured note worth $500 million.