Fidelity Bank Plc has fully redeemed its $400 million Eurobond, meeting its principal repayment and final interest obligations on the five-year debt instrument at maturity on October 28, 2026.
The bank disclosed this in a notice to shareholders, the Nigerian Exchange Limited (NGX) and other stakeholders, stating that it had repaid the outstanding principal and final coupon in full in line with the terms and conditions of the notes.
Issued on October 28, 2021, the 7.625% senior unsecured Eurobond carried an annual coupon rate of 7.625%, with interest payments made semi-annually.
The full redemption brings the five-year instrument to maturity, with Fidelity Bank confirming that it met all scheduled coupon payments throughout the life of the bond.
The bank said the timely repayment reflected its disciplined liquidity planning, prudent asset and liability management, and commitment to meeting its financial obligations.
Details of the Eurobond
The Eurobond had an initial value of $400 million and a five-year tenor, with October 28, 2026, set as its maturity date. The instrument carried a fixed annual interest rate of 7.625%, payable every six months, until the repayment of the principal and final coupon at maturity.
Senior unsecured notes are debt instruments that are not backed by specific collateral and rank according to the applicable terms of the debt and the issuer’s other obligations.
The redemption marks the completion of Fidelity Bank’s obligations under the Eurobond and demonstrates its ability to meet a major foreign-currency debt repayment at the agreed maturity date.
The repayment also concludes the bank’s five-year borrowing arrangement with international investors, although its broader funding position will continue to depend on its other liabilities, liquidity and capital requirements.
