Fidelity Bank don pay back $400m Eurobond from im own money, Air Peace oga tok

Fidelity Bank don pay back im $400m Eurobond when e reach maturity, five years after e borrow di money from foreign investors, according to congratulatory statement from Air Peace chairman Allen Onyema.

Onyema tok say di bank settle di debt with only money wey e get inside, no be say e go borrow fresh money from outside. Dem issue di statement on behalf of board, management and staff of Air Peace and dem report am on Sunday.

Eurobond na debt wey dem raise for international market with foreign currency. For Nigerian banks, e dey open door to overseas investors but e also dey create dollar repayment obligation wey dem must manage with naira liquidity for home.

Why e matter to ordinary Nigerians

Bank wey dey pay im foreign debt on time dey protect depositors' confidence and di whole banking system. Dat confidence dey affect how easy businesses — including airlines — fit borrow to buy aircraft, expand fleet and keep operations running.

Onyema, whose airline be one of di biggest for di country, draw direct line between strong banks and capital-intensive sectors like aviation. E tok say reliable financing dey important for fleet development and for indigenous businesses wey wan expand and compete.

E also note say Fidelity Bank complete im recapitalisation before di deadline wey Central Bank of Nigeria (CBN) set. E tok say di two achievements — di Eurobond repayment and di recapitalisation — show say di bank get sound corporate governance and disciplined financial planning.

Onyema praise Fidelity Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, say she make di bank financial standing and reputation for industry strong.

E congratulate Onyeali-Ikpe, di board, management and staff, and tok say e sure say di bank go reach more milestones. Air Peace, e add, dey wish di institution continued growth and stability.

Di sources no give di exchange rate wey dem use for di repayment, so we no fit tok di naira equivalent. Fidelity Bank never issue im own comment for di reports wey we review.

Wetin go happen next

Attention go now turn to how di bank balance sheet and liquidity go look after di repayment, and how e go use im stronger capital position to lend to businesses.