Fidelity Bank to settle $255.5m debt today, after recalls of outstanding notes
Fidelity Bank Plc will today pay out about $258.06 million to settle a $255.5 million debt buy back after the commercial bank successfully recalled more than 85 per cent of its outstanding $300 million notes due in May 2018 for early redemption.
According to a schedule by the bank, it will today pay $1,010 for every $1,000 of the notes in payment for the principal amount and accrued interest.
Fidelity Bank had on September 28 floated a combined tender offer for early redemption of the $300 million 6.875 per cent Notes due May 9, 2018 and an offering for a new $500 million Eurobond. Application list for the tender offer closed last Wednesday, October 11, 2017.
According to the bank, a total of $255.5 million was validly tendered during the period and it has picked up all the notes validly tendered.
Fidelity Bank had simultaneously launched a $500 million senior unsecured medium term debt notes. The bank intends to list the new notes on the Irish Stock Exchange where they are expected to be traded on the regulated market.
Its Managing Director, Mr Nnamdi Okonkwo, said the bank would net proceeds from the $500 million Eurobond to finance the tender offer of the $300 million notes while the balance would be used for its general banking purposes.
He said after settling the tender offer, the bank will pay the remaining net proceeds of the $500 million Eurobond into its foreign currency domiciliary account, which may be retained in foeign currency or converted to naira, depending on the bank’s requirement from time to time.
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