Fidelity Bank issues N41bn local bonds
Fidelity Bank Plc has successfully issued 10-year N41.21 billion in fixed rate unsecured subordinated bond at a 8.5 percent coupon rate due in 2031.
The bond issuance which was fully subscribed given that total investor interest and commitments in the bonds were N56.6 billion, adds to the impressive portfolio of landmark transactions structured by the bank, and underscores its capacity to successfully execute debt capital market transactions.
The transaction is a landmark achievement in the Nigerian domestic debt market for being the largest corporate bonds ever issued by a Nigerian bank, including the deposit money banks and merchant banks etc.
In December, the bank had announced plans to issue fixed income securities with 10-year tenor to support the growth and development of Small Medium Enterprises (SMES), retail business as well as its technology infrastructure. The bank conducted the debt issuance under its registered N100 billion bond issuance programme.
The bonds are unsecured and subordinated, which will qualify as Tier II Capital in line with the Central Bank of Nigeria (CBN) Guidance Notes on Regulatory Capital for commercial banks in Nigeria.
Speaking on the significance and success of the bond issuance, Mustapha Chike- Obi, Fidelity Bank chairman, said that the bond issuance further demonstrates our confidence in Nigeria’s debt market. “It also validates the continued investor confidence in our corporate strategy and aspirations, strong corporate governance structure and solid and stable executive management team with robust history of superior financial performance and returns”, Obi explained.
Nneka Onyeali- Ikpe, managing director/ CEO, Fidelity Bank CEO, informed that proceeds from the transaction would be utilised to support growth in the issuer’s risk assets in SME and retail business as well as investments in technology & retail infrastructure. This, Onyeali-ikpe added is in line with the bank’s Tier I aspirations. According to her, our business fundamentals have remained strong despite the challenging economic environment occasioned by the coronavirus pandemic and the attendant recession.
“The successful bond issuance highlights the confidence in the Fidelity brand, as well as our capability to expand our funding sources, and deliver innovative financial services to our esteemed customers”, she added. The issue was assigned a rating of A- by Agusto, and A by Datapro and will be listed on both the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange Limited.
Fidelity Bank is a fullfledged commercial bank operating in Nigeria, with over 5.7 million customers who are serviced across its 250 business offices and various other digital banking channels. The Bank is focused on select niche corporate banking sectors, Small and Medium Enterprises (SMES) and is rapidly implementing a digitalbased retail banking strategy which has resulted in annual double-digit growth in savings deposits in at least 7 consecutive years while over 50 percent of its customers are now enrolled on its digital platforms.
The Lagos State Lotteries Board (LSLB) has received International Standards Organisation (ISO) 27001 and 9001 certifications to strengthen its operational capability as the regulator of the gaming industry in Lagos.
The certification was issued by PECB, an ISO/IEC 17024 accredited certification body that provides education and certification in line with internationally recognised standards as established by ISO.
ISO/IEC 27001 assists organisations to understand practical approaches and methodologies that are involved in the implementation of an Information Security Management System, while ISO 9001 (quality management) is specifically designed to serve as a guiding framework for organisations of all sizes and industries as it provides a firm customer focus, including delivering qualitative goods and services that lead to customer satisfaction.
These certifications were approved in recognition of LSLB’S compliance to internationally acceptable standards, Bashir Are, the CEO of LSLB said at the weekend while discussing the Y2020 activities of the board.
Are explained that to obtain the ISO certifications, LSLB had to transform its processes to the required standards and trained its personnel, adding that champions were also appointed from each department to lead the new ethos in line with the acceptable ISO standards.
He noted that the attainment of the ISO certifications exemplifies LSLB’S commitment towards continuous business process improvement and resilience operations.
According to him, the certification is also a demonstration of the commitment of LSLB to boost the confidence of prospective investors and promote the tourism and entertainment sector of the state as encapsulated in the T.H.E.M.E.S agenda of Governor Babajide Sanwo-olu.