Fidelity Bank Plc thursday announced plans to launch up to $500 million Senior Unsecured Medium Notes (Eurobond) as well as a tender offer to purchase the banks’ outstanding $300 million 6.875 per cent Notes due May 9, 2018.

Fidelity Bank disclosed this in a notification to the Nigerian Stock Exchange (NSE). According to the bank, it intends to list the $500 million on the Irish Stock Exchange with the expectations that the notes will be traded on its regulated market.

The bank said it intended to issue the notes directly but will retain the flexibility to substitute issuer with an offshore special purpose vehicle (SPV), where market conditions require and allow for such prior to the maturity of the notes.

Fidelity Bank Plc said the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC), have given ‘no objection’ approvals to the transaction.

According to the bank, the net proceeds of the notes will be used to finance the tender offer of existing notes and for its general banking purposes.

“The bank will pay the net proceeds from the notes issuance after settling the existing notes in foreign currency or converted into Naira, depending on the bank’s requirement from time to time,” it said.
Market analysts said, if successfully raised, the new funds would help to boost the bank’s performance going forward.

Fidelity Bank had ended the half year to June 30, 2017 with an impressive financial results, posting growth in key performance indicators.

The bank posted gross earnings of N85.8 billion in H1 of 2017, up 22 per cent from N70.2 billion recorded in the corresponding period of 2016. Interest income grew by 27.8 per cent, while interest expenses grew faster by 48 per cent to hit N38.2 billion compared with 25.7 billion in 2016. As a result, net interest income stood at N34.7 billion in 2017 compared with N31.2 billion, indicating a rise of 11 per cent. Impairment charges remained flat at N4.8 billion in 2017 as against N4.79 billion in 2016.

Despite the high inflationary trend, the bank reduced operating expenses by 1.7 per cent to N30.9 billion, from N31.4 billion in the corresponding period of 2016.

Consequently, profit before tax (PBT) rose by 66.6 per cent to N10.2 billion, from N6.131 billion in 2016, while profit after tax (PAT) improved by 65.6 per cent from N5.457 billion to N9.04 billion in 2017. Earnings per share similarly improved to 31 kobo as against 19 kobo in 2016.

Source:https://brandspurng.com/fidelity-bank-launches-500-million-eurobond-to-boost-operations/

Dem try

What does this mean? Them wan sell shares by next year or what? Someone explain more. I need to get grip with real investment opportunities hence..

Let them continue declaring their exorbitant figures. I dey come

Lol

Priceless200:
What does this mean? Them wan sell shares by next year or what? Someone explain more. I need to get grip with real investment opportunities hence..

It means they are borrowing more money to pay the money they borrowed which would mature in 2018.

The remaining money would be used to strengthen their operations and ability to make more profit.

So, Yes, it is a good investment opportunity to key into Fidelity Bank.

Biafran run banks are the best...Fidelity, Diamond, UBA and Zenith...top notch! Whenever I go to GTB, just entering the building and lobby, how disorganized it's, you need no one to tell you it's a yoruba bank.

Why tie my money in some hopeless bank's bonds while i could just take $100k and invest in DASH, MONERO, ETHERUM or BITCOIN and become a multimillionaire in a few years time?

kazantip:
Why tie my money in some hopeless bank's bonds while i could just take $100k and invest in DASH, MONERO, ETHERUM or BITCOIN and become a multimillionaire in a few years time?

Hmmmmm.....

@OP

How can one invest in this fidelity eurobond?

[quote author=Mopolchi post=60968059][/quote]
Ignore the fool... his just jobless

sumply go to any fidelity branch and tell the customer's care servise that you want buy the bank's bond and they will direct you to the right office.

I love fidelitybank. Good service and financially strong.