Fidelity Bank Assures N500bn Recapitalisation Target

The managing director/CEO, Fidelity Bank Plc, Nneka Onyeali-Ikpe, has assured of the Bank meeting up its N500 billion recapitalisation exercise.

This is as the Bank yesterday, June 20, 2024 commenced its capital raising of N127.1 billion comprises of public offer of 10 billion ordinary shares of 50 kobo each at N9.75 per share and rights issue of 3.200 billion ordinary shares of 50 kobo each at N9.25 per share.

Speaking at the Bank’s public offer and rights issue Facts Behind the Combined Offer event held yesterday in Lagos, Onyeali-Ikpe said the financial institution’s N127.10 billion capital raising exercise is to be considered as a pacesetter in the life of the banking industry capitalisation drive.

She stated that “our capital raising process was proactively initiated after obtaining approval from our shareholders in August 2023. This is part of our strategic growth plan to raise additional capital to meet our growth needs.”

According to her, the CBN recapitalisation directive presents a significant opportunity for a stronger and more resilient banks industry.

“We have embraced the challenge as a catalyst to propel us towards our long term vision of becoming a market leader across every product that we could offer and segments that we serve, not just in Nigeria, but as an international bank.”

She explained that “the proceeds from the offers will be instrumental in achieving our strategic growth plans.

“The funds will be deployed to drive our business and regional expansion. We will strategically expand our footprint within Nigeria to serve as a broader customer base and to unlock new market opportunities.”

She added that “we will invest In and upgrade existing information and technology infrastructure. The offer will support our customers and their businesses.”

She emphasised that the Management is optimistic the Bank will continue to record significant growth and improvement in its operations over the coming years.

She added that the Rights Issue will create a win-win for both the Bank, the investors, the shareholders and other stakeholders in translating this investment into significant economic benefits and enhanced shareholder value.

Also, the executive director, Fidelity Bank, Mr. Stanley Amuchie said “this is the first of course, and multistage approach that we tend to take, and not only to attain the N500 billion requirement, but our aspiration is actually to surpass it.”

He added that Fidelity Bank has grown exponentially in the last four years, which is based on strong fundamentals, strict corporate governance and on numbers that are sustainable.