Planet Capital leads Fidelity Bank issuance of N30bn bond

Planet Capital Limited, a player in the Nigerian capital market, is leading other capital market operators in the issuance of Fidelity Bank plc N30,000,000,000 Bond. The bond qualifies as a security that Pension Fund Administrators and Trustees can invest in and is also tax exempt, which makes it even more attractive. It will be listed on the Nigerian Stock Exchange (NSE) and freely tradable.

Christopher Ezeh, chairman of the bank, said the Issue would increase the bank’s Tier II capital, improve capital adequacy and support its SME lending and retail infrastructure.

According to Nnamdi Okonkwo, managing director of the bank, the bank will be injecting a significant portion of the proceeds to the Small and Medium Enterprises (SMEs), the initiative is part of Fidelity Bank’s efforts at deepening the SME sector that is the engine room of Nigeria’s economy. The bank is targeting a loan book growth rate of about 10 percent in 2015, with most of the loan facility targeted at SMEs.

Explaining further, he said about 471,000 retail customers were added to the bank last year, noting that with additional capital the bank was in a better position to enhance its earnings profile for sustainable growth.

Tony Anonyai, a co-CEO/managing director of strategic advisory group, Planet Capital Limited, commended the bank for the initiative towards growing its capital in support of its lending role and towards meeting regulatory requirements. He observed that “since the funds would be applied to SMEs, Fidelity Bank is helping in the entrepreneurial development of Nigerians.”

He said with the strong risk management profile of the bank as evidenced in its 2014 audited financials, there was no doubt the new capital will be properly deployed and the downside of lending to SMEs well managed.

Anonyai said “the Fidelity Bank plc N30 billion Bond Issuance supports market operators desire to grow the corporate bond sector of the market, and brings Fidelity Bank deeper into the market as the bank will henceforth be traded on both the debt and equity segments of the market.”