Fidelity Bank to Raise N30bn through Bond Offer
The Fidelity Bank Plc has offered for subscription, a N30 billion 16.48 per cent fixed rate subordinated unsecured bonds due 2022.
The bank said the fund would be used to expand its support to the small and medium enterprises (SMEs) as well as retail segments of the market. The fund would also count as tier II capital in line with the guidelines of Basel II.
The completion board meeting, for the signing of the transaction documents for the offer took place in Lagos at the weekend.
Speaking at the event, the Managing Director/Chief Executive Officer, Fidelity Bank, Mr. Nnamdi Okonkwo said the offer had been firmly and fully underwritten, describing it as a measure of confidence the investing public has in the bank.
Okonkwo, noted that despite the impressive performance recorded by the bank in its 2014 financial results, Fidelity Bank still has a lot to offer its stakeholders and investors in the future.
“We are on journey to deliver a better and improved banking service. This is just one of the way through which we would get there. I will like to assure you that the confidence the investing public has placed in us will not be misplaced. We would justify the confidence by working together as a team.
“Our capital adequacy ratio is 23 per cent, which means we are much capitalised because the regulatory requirement is 15 per cent. But we are also looking forward. We are a very strong SME bank. So, we have raised this bond to channel it to our SME banking and to improve our retail infrastructure.
“The kind of growth we witnessed in the SME sector last year tells us that if we properly provide the right infrastructure to that segment, it should be the new frontier to help us face the difficult environment that we are operating in,” the Fidelity Bank boss explained.
Fidelity Bank is a fully integrated commercial bank focused on building and maintaining a well-respected brand that caters for the needs of its growing corporate, commercial and consumer banking clientele.
On his part, the Chairman of Fidelity Bank, Chief Christopher Ezeh said the bank has presence in major cities and commercial centres of Nigeria and is reputed for integrity professionalism, and for the quality and stability of its management.
“The bank now seeks to raise the 7-year fixed rate subordinated bond from the Nigerian capital market by way of offer for subscription. As you may be aware, the bond qualifies as securities in which pension funds assets can be invested under the Pension Reforms Act 2014 and as securities in which trustees may invest under the Trustees Investment Act, Cap T22, LFN, 2004. The bonds are exempt from taxation in Nigeria which makes them even more attractive,” he added.