The Oasis Reporters
June 8, 2021
In a move to strengthen the existing relationship and lend more support for government’s economic initiatives, the EXCO members of Fidelity Bank led by Managing Director/CEO, Mrs. Nneka Onyeali-Ikpe have paid a courtesy visit to the Office of the Senate President of the Federal Republic of Nigeria, His Excellency, Distinguished Senator (Dr.) Ahmad Ibrahim Lawan.
Fidelity Bank has always made concerted efforts aimed at collaborating with the private and public sectors. The Bank had in the past paid courtesy visits to industrialists and top government officials such as the Governors of Ogun State, Lagos State, Oyo State, Imo State and Osun State, as well as the founder of BUA Group, Abdulsamad Rabiu.
This, financial analysts on Broad Street, Lagos, told The Oasis Reporters, is part of the leading Tier-2 bank’s strategic plan that is expected to continue to lead the transformation of the Bank in its quest for Tier 1 status via dynamism in diverse fields.
It was announced early February 2021 that Fidelity Bank had issued Tier II Local Bonds, described as largest ticket so far in the category.
That was an early indication of the bank’s strong fundamentals underlying the investor confidence in Fidelity Bank Plc which showed signs that the leading Tier 2 financial powerhouse may be on it’s way to the top segment pretty shortly.
Fidelity Bank Plc had then said it has successfully issued 10 years N41.21 billion in fixed rate unsecured subordinated bond at 8.5 per cent coupon rate due 2031.
Mr Mustapha Chike-Obi, Fidelity Bank Chairman who had newly assumed office coming with an impressive resumé as former AMCON Chief Executive, disclosed this in a statement made available to the News Agency of Nigeria (NAN) in Lagos.
Chike-Obi said that the bond issuance which was fully subscribed given that total investor interest and commitments in the bonds were N56.6 billion.
According to him, the transaction underscores the bank’s capacity to successfully execute debt capital market transactions.
In December, 2020 too, the bank announced plans to issue fixed income securities with 10-year tenor to support the growth and development of Small Medium Enterprises (SMEs), retail business as well as its technology infrastructure.
The bank conducted the debt issuance under its registered N100 billion bond issuance programme.
The bonds are unsecured and subordinated, which will qualify as Tier II Capital in line with the Central Bank of Nigeria Guidance Notes on Regulatory Capital for commercial banks in Nigeria.
Chike-Obi said: “The bond issuance further demonstrates our confidence in Nigeria’s debt market.
“It also validates the continued investor confidence in our corporate strategy and aspirations, strong corporate governance structure, solid and stable executive management team with robust history of superior financial performance and returns,” Obi explained.
Mrs Nneka Onyeali-Ikpe, the bank’s Chief Executive Officer, said proceeds from the transaction would be utilised to support growth in the issuer’s risk assets in SME, retail business and investments in technology as well as retail infrastructure.
Fidelity Bank, under Mrs Nneka Onyeali-Ikpe who resumed office on January 1st, 2021 from within the top executive cadre that she joined since 2015 has led the organization to attain a Profit Before Tax (PBT) of N28.1BN, despite the Covid-19 imposed difficult business environment, worldwide.
It then proposed a dividend of 22Kobo Per Share with its growth in core operating profits, up from N29.8BN in 2019 FY to N44.9BN in 2020 and net revenue increasing by 15.0% from N111.8 BN in 2019 FY.
By Greg Abolo