Nigeria's Fidelity Bank raises $151M via bond issue to boost lending

Nigeria‘s Fidelity Bank has raised 30 billion naira ($151 million) through an unsecured bond at 16.48 percent, to fund increased lending to small businesses and retail clients, financial advisers to the issue said on Monday.

According to the bond prospectus seen by Reuters, the fixed-rate bond due 2022 was fully underwritten and will be quoted on the Nigerian Stock Exchange. Fidelity Bank can redeem the bond after five years, it said.

Nigerian lenders have been shoring up their balance sheets after adopting stricter international capital requirements, which has meant capital ratios for most lenders dropping by between 100 and 400 basis points to near the regulatory minimum of 16 percent.

Read more: UPDATE 1-Nigeria Fidelity Bank raises $151 mln via bond issue to boost lending | Reuters