Fidelity Bank returns to the Eurobond market with Afreximbank and raises $ 400 million

A masterstroke for the CEO of Fidelity Bank PLC, Ms. Nneka Onyeali-Ikpe, one of the few African women to run a bank. With more than three decades of experience and a background in several institutions including Standard Chartered Bank and Zenith Bank, the head of one of Kenya’s top-rated banks managed to raise USD 400 million between October 21 and 28.
The African Export-Import Bank (Afreximbank) through its investment banking arm Advisory & Capital Markets (ACMA) acted as Joint Lead Manager (JLM) and Bookrunner for this Eurobond Fidelity Bank Plc denominated on 5 years. The other members of the placement syndicate were Citi and JP Morgan.
“Afreximbank’s role in this transaction is strategic and emblematic of both consistency in delivering value to our clients throughout their growth lifecycle, and the Bank’s willingness to provide options for innovative and sustainable financing via Debt Capital Markets in addition to our personalized banking services “, explained Professor Benedict Oramah, Chairman and Chairman of the Board of Directors of Afreximbank.
As a reminder, on October 18, 2021, Fidelity Bank announced the marketing of a 5-year benchmark bond, which was followed by a two-day virtual roadshow. The virtual roadshow included a call to global investors and a series of breakout and one-on-one meetings with some of the top international and local accounts in the emerging markets space. Following the success of the tour, Fidelity Bank announced on October 21, 2021 a new 5-year benchmark transaction and then priced a $ 400 million 5-year note at a yield of 7.875% and a coupon of 7.625%. The transaction closed comfortably within the limits of its cost optimization pricing objectives, with an order book oversubscribed by around 2 times.
The issue marks Fidelity Banks’ return to international debt capital markets after a hiatus of around 4 years and is its third Eurobond since 2013. Investors in the deal included some of the world’s most active institutions , with strong investor demand from the UK, Continental Europe, US, Asia, Middle East and Africa despite tight market conditions and a competitive supply. This demonstrates the growing reputation of the issuer among DCM’s international investors.