$400m Eurobond: Fidelity Bank appoints Afreximbank joint lead manager, bookrunner

Fidelity Bank appoints ED

African Export-Import Bank (Afreximbank) through its Advisory & Capital Markets (ACMA) investment banking arm acted as a joint lead manager and Bookrunner to place and close Fidelity Bank Plc’s $400 million 5-Year senior unsecured Eurobond on October 21, 2021. The transaction settled on October 28, 2021 and other JLMs/Bookrunner were Citi and J.P. Morgan, Afreximbank said in a statement.

President and chairman of the board of directors of Afreximbank Prof Benedict Oramah remarked, “Afreximbank’s role in this transaction is strategic and emblematic of both consistency in delivery of value to our clients throughout their growth life cycle, and of the Bank’s successful drive to provide innovative and sustainable funding options via the Debt Capital Markets in addition to our client-tailored banking services.”

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Fidelity Bank had announced on October, 18 2021,  the marketing of a benchmark 5-year bond, which was followed by a two-day virtual roadshow. The virtual roadshow comprised of a global investor call and a series of small group and one-on-one meetings with some of the key international and local accounts in the emerging market space.

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Following the successful roadshow, on October 21, 2021 Fidelity Bank announced a new 5-year benchmark transaction and subsequently priced a $400 million 5-Year note at a re-offer yield of 7.875 per cent and a coupon of 7.625 per cent. The transaction closed within its cost optimization pricing targets, with the order book twice oversubscribed.

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The issue marks Fidelity Banks’s return to the international debt capital markets after a 4-year break and is its third Eurobond since 2013.

The investors in the transaction included some of the most active institutions from around the world, with healthy investor demand from the UK, Mainland Europe, US, Asia, the Middle East and Africa notwithstanding tight market conditions and competing supply. This demonstrated the issuer’s growing reputation with international DCM investors.


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