Fidelity Bank has announced the listing of its N41.21 billion, 8.5% fixed rate unsecured subordinated bond on the Nigerian Stock Exchange (NSE). This was contained in a disclosure signed by the bank’s secretary, Ezinwa Unuigboje, and published on the NSE.

According to the disclosure, the bank announces to the general public that its N41.21 billion 10 years 8.5% subordinated unsecured fixed-rate series 1 bonds, which was issued on 7th January 2021, and is due by 2031 has been listed on the daily official list of NGX.

Recall that Nairametrics had reported that FMDQ Securities Exchange Limited announced the successful listing of the Series 1 bond earlier in March 2021, under its N100 billion debt issuance.

• Fidelity Bank had revealed in 2020, plans to issue up to N50 billion in local bonds by Q4 2020 in order to refinance existing debts.
• The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call in September 2020 as reported by Nairametrics.
• He stated that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48% rate.

What you should know

• The allotment of the bonds will be effected by way of e-allotment to successful allottees.
• The disclosure published earlier in February stated that the Registrars, First Registrars, and Investor Services Limited will credit the respective Central Securities Clearing System (CSCS) accounts of successful allottees with the allotted bonds.
• As part of its N100 billion bond issuance programme, Fidelity Bank Plc had earlier issued a N30 billion Fixed Rate Subordinated Unsecured Bond on the FMDQ Exchange platform in 2015. The bond had a face value of N1000, tenor of 7 years, and a coupon rate of 16.48%.

The Debt Management Office (DMO) has announced the offer of N150 billion bonds for subscription by auction in the month of April on behalf of the Federal Government.

A breakdown of the bonds shows that a 10-year reopening bond is to be offered at the rate of 16.2884% with a maturity date in March 2027; a 15- year reopening bond will be offered at 12.5% with a maturity date in March 2035; and the third and longest bond which is a 25-year reopening bond will be offered at 9.8% and mature in July 2045.

This disclosure is contained in a circular issued by the DMO on April 14, 2021, and can be seen on its website.

The circular states that the bonds which would be auctioned on April 21, 2021, have a settlement date of April 23, 2021, adding that the unit of sale is N1,000 per unit subject to a minimum subscription of N50,000 and in multiples of N1,000 thereafter.

It also states that the interest is payable semi-annually with the redemption expected to be in bullet payment on the maturity date.

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In case you missed it

• The DMO had earlier disclosed that the Federal Government’s bonds for March worth N150bn which were auctioned were oversubscribed by N183.48bn.
• The total subscription received from investors for the bonds was N333.48bn comprising N65.25bn for 16.2884% FGN March 2027 bonds; N110.19bn for 12.5% FGN March 2035 bonds; and N158.04bn for 9.8% FGN July 2045 bonds.
• The auction result added that out of 82, 125 and 215 total bids for the tenures, 48, 88 and 176 were successful.
• It stated that a total of N262.1bn was allotted, comprising of N44.01bn, N86.29bn and N131.80bn respectively.