Fidelity Bank Announces Capital Raise via Private Placement

Fidelity Bank has outlined its intention to raise additional capital via private placements to meet the revised capital requirements set by the Central Bank of Nigeria.

According to resolutions from its recent extraordinary general meeting, as filed on the Nigerian Exchange Limited portal, stakeholders approved the capital increase.

Shareholders authorized the board of Fidelity Bank “to issue, through one or more private placements, up to 20,000,000,000 ordinary shares of N0.50 kobo each in the company’s share capital (not exceeding 30 per cent of its existing issued shares and paid-up capital) to one or more investors, in tranches and on such pricing, timing, terms, and conditions as determined by the board.”

“That the private placements in Resolution (4) above shall be carried out in compliance with applicable laws and subject to necessary regulatory approvals.”

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The decision to raise additional funds followed the approval to increase the bank’s issued share capital from N26.70bn, divided into 53,400,000,000 ordinary shares of N0.50 Kobo each, to N36.70bn through the creation of 20,000,000,000 additional ordinary shares of N0.50 Kobo each. The newly issued share capital will have equal ranking with the existing ordinary shares of the company.

Additionally, Fidelity Bank Plc successfully concluded the first phase of its equity capital raise, achieving a 237.92 per cent oversubscription in its public offer, while its rights offer saw a 137.73 per cent oversubscription.

Managing Director/Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, commented on the investor response, stating, “We are delighted with the outcome of this first phase of our capital raise. The strong investor participation reflects the market’s confidence in Fidelity Bank and our strategic direction.”

She further stated that the upcoming phase of capital raising would strengthen the bank’s capacity for sustainable growth and improved service delivery. “As we advance to the next phase, we reaffirm our commitment to providing innovative financial solutions to our customers and ensuring sustainable returns for our stakeholders,” she added.

Fidelity Bank, which holds an international license, is required to raise N500bn to meet its categorization.