Fidelity Bank raises N30 billion to boost lending

06 Jul 2015
Financial Nigeria

Summary

ther borrowings by Fidelity Bank include a $300 million debut Eurobond, which amounted to N90.73 billion as at December 2014.

Nnamdi Okonkwo, MD/CEO, Fidelity Bank Plc

Fidelity Bank Plc has raised N30 billion ($151 million) through an unsecured bond at 16.48 percent, to fund increased lending to businesses.

According to Reuters, the fixed-rate bond, which is due in 2022, was fully underwritten and will be quoted on the Nigerian Stock Exchange. In addition, the bank can redeem the bond after five years.

Other borrowings by Fidelity Bank include a $300 million debut Eurobond, which amounted to N90.73 billion as at December 2014, has a capital ratio of 22.6 percent.

Meanwhile, Skye Bank Plc said it will raise N50 billion via a rights issue by the third quarter of 2015 to expand its loan book, after it sold commercial notes in March worth N100 billion.

Stanbic IBTC Holdings, the Nigerian subsidiary of South Africa's Standard Bank, has filed an application to the Nigerian Stock Exchange to raise N20.4 billion also via a rights issue.

Nigeria's banking sector index, which accounts for around 40 percent of total stock market capitalisation, has gained 2.9 percent so far this year, having lost 22 percent last year owing to a heavy burden from tight regulation.

Fidelity Bank said it expects profit this year to reach N23.5 billion. Its pretax profit in 2014 was 16.5 billion naira in 2014.


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