SEC approves Fidelity Bank’s request to raise $500m

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The Securities and Exchange Commission (SEC) has approved the Fidelity Bank’s request to raise capital from the Republic of Ireland for its operation.

In a notice to the Nigerian Stock Exchange (NSE) on Monday, Fidelity Bank is seeking to raise $500 million at the Irish Stock Exchange for general corporate purposes, including support for its trade finance business.

The fund will further increase Fidelity Bank’s debt profile to N299.75 billion from N241.86 billion reported on March 31, 2020.

The fund will be raised through unsecured notes on the Irish capital market which provides less security as it will not be issued with Fidelity Bank’s assets.

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Issuing of the unsecured notes will commence after a meeting with investors on Monday. The debt service will be due in 2026.

“The proposed aggregate offer size is (Five Hundred Million United States Dollars) due 2026, which will when issued rank parri passu without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank,” the notice read.