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UPDATE 1-Fidelity Bank picks advisers for up to 75 bln naira bond sale

Published 03/11/2020, 16:16
Updated 03/11/2020, 16:18
© Reuters.

(Adds detail)
ABUJA, Nov 3 (Reuters) - Fidelity Bank FIDELIT.LG has
picked advisers to raise between 50 billion naira and 75 billion
naira ($197 million) through a bond sale, its chief executive
said on Tuesday, taking advantage of a fall in yields in the
local debt market.
CEO Nnamdi Okonkwo told an analyst call the mid-tier bank
had received central bank approval to proceed with the debt
sale.
Bond yields have declined on the local debt market after an
oil price crash triggered by the coronavirus pandemic caused
foreign investors to sell naira assets, leaving money markets
awash with liquidity.
Debt market yields have dropped from a high of 18% three
years ago. Yields on treasury bills fell below 1% last month.
Fidelity said the planned bond issue in the fourth quarter
plus retained earnings will take its capital adequacy to 20% by
year end, from around 18.2%, which is above the regulatory
minimum of 15%.
Fidelity has said proceeds from the new issue will be used
to redeem an existing 30 billion naira bond sold at
16.48%. On Monday, Fidelity said profit before tax for the
nine-month rose by 3.6% to 21.3 billion naira from a year
earlier. = 380.70 naira)

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