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UPDATE 1-Nigeria's Fidelity Bank to sell up to 50 bln naira bond in Q4

Published 08/09/2020, 16:34
Updated 08/09/2020, 16:36
© Reuters.
FIDELIT
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(Adds details)
By Chijioke Ohuocha
ABUJA, Sept 8 (Reuters) - Nigeria's Fidelity Bank
FIDELIT.LG plans to issue up to 50 billion naira ($131.3
million) in local bonds by the fourth quarter to refinance
existing debt as yields fall, a senior executive said on
Tuesday.
Bond yields have declined on the local debt market after an
oil price crash triggered by the novel coronavirus pandemic
caused foreign investors to dump naira assets, leaving money
markets awash with liquidity.
The new issue will be made to redeem an existing 30 billion
naira bond issued at 16.48%, Chief Operations and Information
Officer Gbolahan Joshua told an analyst call.
Debt market yields have dropped from a high of 18% three
years ago. Yields on the one-year treasury bill are quoted under
5%.
The mid-tier lender has said it expects to see a 15% drop in
profit this year compared with 2019, citing the impact of the
coronavirus pandemic. It said profit before tax had increased by 21.9% to 12
billion naira in the half year.
Fidelity said income declined in the second quarter due to a
downward review of lending rates on loans backed by development
finance institutions and an economic slowdown.
Nigeria's growth contracted in the second quarter with fears
that the economy could be heading into a recession in the next
quarter. = 380.70 naira)

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