Fidelity bank to launch $500,000, 000m medium-term debt
*To list notes on the Irish Stock Exchange
Bonny Amadi
Fidelity Bank Nigeria Plc, has notified the Nigerian Stock Exchange (NSE) and the investing public of its intention to launch of up to $500,000,000 senior unsecured medium- term debt notes, as well as a tender offer to purchase the bank’s $300,000,000 6.785 per cent notes due 9th May 2018.
The Nigerian Stock Exchange (NSE), in its publication, on Thursday, on behalf of the bank and signed by Chief Executive officer , fidelity Bank, Nnamdi Okonkwo, notified that by the interaction, the bank intends to list the notes at the Irish Stock Exchange and hopes that the notes will be traded on the country’s stock Exchange.
According to the report, the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) have given their endorsements to the transaction.
The statement further revealed that the bank intends to issue the notes directly, but would retain the flexibility to substitute the issuer with an offshore special purchase vehicle where market conditions require and allows for such prior to maturity of the notes.
The bank said that it intends to utilize the net proceed of the loan (notes) to finance the tender offer of the existing notes and for its general banking operations.
The bank said that it would pay net proceed from the note issuance after setting the existing notes into its foreign currency domiciliary account which may be retained by the bank in foreign currency or converted into naira depending on the bank’s requirement form time to time.
The offer programeme further revealed that certificate of capital importation (CCI) would not be issued in respect of the notes that are not converted into naira, hence, CCI is issued in respect of capital imported into Nigeria.
