By our reporter/ Fidelity Bank Plc on Monday announced plans to raise $500 million from the international debt capital market through the issuance of unsecured notes.
Ezinwa Unuigboje, the company secretary, who made the disclosure in a statement, said the bank intended to list the notes on the Irish Stock Exchange, adding that the proceeds would be used for general corporate purposes, including supporting the bank’s trade finance business.
An unsecured note is a loan that is not secured by the issuer’s assets. Usually, it isn’t backed by collateral, the interest rates offered are higher than secured notes.
According to the statement, the Securities and Exchange Commission (SEC) has given its approval to the bank for the transaction to go ahead.
“The purposed aggregate offer size is $500million, due 2026, which will when issued rank parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank,” the statement reads.
“The company intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the transaction.
“In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of planned investors meetings with respect to the transaction scheduled to commence today October 18, 2021.
“The final decision to issue the notes will however be subject to finalising the necessary transaction documentation and prevailing market conditions.”