Fidelity Bank raises $400 million through Eurobond offering

24 Oct Fidelity Bank raises $400 million through Eurobond offering

Fidelity Bank Plc has concluded a highly successful Eurobond offering, raising US $400 Million from the international capital markets through a five-year tenor Eurobond, with a 7.765% coupon.

The Eurobond was managed jointly by JP Morgan, the No. 1 Globally Ranked Investment bank in the global Eurobond league tables, along with Citigroup, who are No. 2 globally behind JP Morgan; and are No. 1 in Nigerian Bank Eurobonds specifically. The other Joint Lead Manager (JLM) was the African Export-Import Bank (Afreximbank), which is one of Africa’s top-rated financial institutions.

Fidelity Bank was able to assemble such a strong team of JLMs due to the bank’s reputation for world-class corporate governance and risk management, along with its highly experienced and top-quality management and one of the strongest Board of Directors in the banking industry.

The Managing Director/CEO of the bank, Mrs. Nneka Onyeali-Ikpe, is a highly respected and admired trailblazer, as one of the few female CEOs in the banking industry, and has over three decades of experience, having previously worked at various other top financial institutions, including Standard Chartered Bank and Zenith Bank.

The total order book from investors peaked at over $750m before the tightening of the price. However, Fidelity Bank took $400 million which fell within the acceptable coupon rate in line with the Bank’s expectations and cost optimization aspirations. The Eurobond was oversubscribed by nearly twice the book size.