Fidelity Bank Plc has fully redeemed its $400 million Eurobond, meeting its debt obligations at maturity after five years of scheduled interest payments, in a move that underscores the lender’s liquidity management and debt-servicing capacity.
The bank disclosed this in a notice to the Nigerian Exchange Limited (NGX) on Thursday, October 29, following the redemption of the 7.625 percent senior unsecured notes on October 28, 2026.
The five-year Eurobond was issued on October 28, 2021, with an annual coupon rate of 7.625 percent, payable semi-annually. Fidelity Bank said it met all scheduled coupon payments throughout the life of the instrument before repaying the outstanding principal and final coupon in full at maturity.
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The redemption brings the $400 million debt instrument to its contractual conclusion, with the bank confirming that it fulfilled its payment obligations under the terms and conditions of the notes.
The transaction highlights the importance of liquidity planning and liability management for Nigerian lenders that access international debt markets to support their funding needs and growth ambitions.
According to the bank, the timely repayment reflects its disciplined liquidity planning, prudent asset and liability management, and commitment to meeting its financial obligations.
The Eurobond was issued as senior unsecured notes, meaning the debt was not secured by specific collateral. Its repayment therefore represents the fulfilment of the bank’s contractual obligations to noteholders under the instrument.
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Fidelity Bank expressed appreciation to its noteholders, regulators, customers, shareholders and other stakeholders for their confidence and continued support.
The redemption comes as Nigerian banks navigate changing funding conditions and capital requirements while managing their balance sheets and obligations to domestic and international investors.
However, the bank’s notice did not disclose the source of funds used for the repayment, the transaction’s impact on its liquidity position, or whether it plans to raise fresh foreign-currency debt to replace the matured instrument.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
