Chimara BygoldBy Chimara Bygold
FIDELITY Bank Plc has concluded a successful offering, raising $400 million from the international capital markets through a five-year tenor Eurobond, with a 7.765 per cent 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 number two globally behind JP Morgan; and number one in Nigerian Bank Eurobonds. The other Joint Lead Manager (JLM) was Africa’s top-rated financial institution, the African Export-Import Bank (Afreximbank).
Industry watchers believe Fidelity Bank was able to assemble a strong team of JLMs as a result of sound corporate governance and risk management, along with its experienced Management and Board of Directors.
Managing Director/CEO of the bank, Mrs. Nneka Onyeali-Ikpe is one of the few female CEOs in the banking industry with 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 $750million 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. Investors in the Eurobond include some of the most selective and best quality institutions from around the world, including investors from the UK, Europe, the United States, Asia, Middle East and Africa. This is Fidelity Bank’s third highly successful outing in the Eurobond market, having previously issued Eurobonds in 2013 and 2017, building an impressive track record in the global markets.
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