Fidelity Bank plc,in a combined new issue & liability management offering successfully issued US$400m 5-year Eurobond with a 10.50% coupon in what is
The bank disclosed this in a statement made available to newsmen on Tuesday in Lagos.According to the statement, Citigroup Incorporated, Renaissance Capital and Standard Bank Group Limited managed the deal, which included any-and-all cash tender offer for the early redemption of its $300 million 6.875 percent Notes due May 9, 2018.
It stated that the tender offer was very successful with the repurchase of $256 million of its $300 million existing USD notes due in May 2018. This represents a tender hit ratio of 85%, one of the best results recently achieved by peers.
“Proceeds from the new US$400 million issue due 2022 was used to finance the tender offer of $256 million and the balance (net issuance cost) will be used to support the trade finance business of the Bank,” it read.
The Managing Director of Fidelity Bank, Mr. Nnamdi Okonkwo, said: “We are delighted to have successfully completed the offering, and believe the transaction has a big positive signalling effect.
It paves the way for other banking institutions, especially the Tier 2 Banks in Nigeria to explore the Eurobond source of funding in the international arena and talk to the global emerging markets investor community as Nigerian market rebounds and we see bigger demand for strong local stories.”
The statement further reads: “The Bank conducted a focused marketing campaign, on the back of the strong tender offer & new issue investor feedback.
“The strong demand for the new issue and the transaction structure favouring existing holders during the new issue allocation led to a high conversion ratio with over 60% of the holders of the old notes subscribing for the new notes.
“The landmark Eurobond issue was 2.0x oversubscribed (Order Book of $630 million), with the final coupon ultimately set at 10.50%. The transaction achieved a wide market distribution with over 100 investors from the UK, US, Continental Europe, Asia and Africa subscribing to the new issue, DailyTrust reports.
