Fidelity Bank Plans To Raise Funds Via Private Placement

Fidelity Bank has announced plans to raise additional funds through private placements in order to meet the new capital threshold set by the Central Bank of Nigeria for banks operating within the country.

The bank’s recent extraordinary general meeting approved the resolution to issue up to 20 billion ordinary shares of 50 kobo each, which represents up to 30 percent of its existing issued shares and paid-up capital. These shares will be offered to investors in tranches, with pricing and terms to be determined by the bank’s board. The placements will comply with all applicable laws and regulatory approvals.

In addition, the bank’s shareholders approved an increase in the bank’s issued share capital from N26.7 billion to N36.7 billion, achieved by creating up to 20 billion new shares. The newly issued shares will rank pari passu with the existing shares of the company.

This capital raise follows the successful first phase of Fidelity Bank’s equity capital raise, which saw strong investor participation. The public offer was oversubscribed by 237.92 percent, and the rights offer was oversubscribed by 137.73 percent.

Dr. Nneka Onyeali-Ikpe, Managing Director/CEO of Fidelity Bank, expressed satisfaction with the positive response from investors, highlighting the market’s confidence in the bank’s strategic direction.

Looking ahead, Fidelity Bank aims to raise N500 billion to meet its new categorisation requirement and further strengthen its position for sustainable growth and improved service delivery.