Paragraph 1: Fidelity Bank’s Strategic Capital Increase
Fidelity Bank Plc, a leading financial institution in Nigeria, has embarked on a significant capital-raising initiative, increasing its issued share capital from N26.7 billion to N36.7 billion. This strategic move, approved by shareholders at an Extraordinary General Meeting (EGM), aims to bolster the bank’s financial strength, enhance its competitive edge, and drive sustainable growth. The capital increase involves the creation of 20 billion additional ordinary shares, valued at N0.50 kobo each, bringing the total issued share capital to N36.7 billion. This expansion of the bank’s equity base will provide it with the financial flexibility to pursue new opportunities, deepen its digital transformation efforts, and broaden its market reach.
Paragraph 2: Empowering Growth and Innovation
The capital raise represents a pivotal step in Fidelity Bank’s long-term expansion strategy. By strengthening its balance sheet, the bank aims to position itself for sustained growth and innovation. The additional capital will enable Fidelity Bank to explore new avenues for growth, invest in cutting-edge technologies, and enhance its digital capabilities to meet the evolving needs of its customers. This strategic move aligns with the bank’s vision to become a leading player in the Nigerian financial services sector and deliver exceptional value to its stakeholders.
Paragraph 3: Flexible Capital Raising Options
To achieve the capital increase, Fidelity Bank’s Board of Directors has been authorized to raise additional equity capital through a variety of channels, including private placements, rights issues, and public offers. This flexibility allows the bank to choose the most suitable method based on market conditions and regulatory considerations. The Board has also been granted the authority to underwrite the capital-raising exercise, if necessary, to ensure full subscription and the successful completion of the initiative.
Paragraph 4: Regulatory Compliance and Shareholder Alignment
Fidelity Bank is committed to conducting the capital-raising process in full compliance with all relevant regulatory requirements. The bank will adhere to the guidelines set forth by the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), and Corporate Affairs Commission (CAC). Shareholders have fully supported the capital increase and the amendments to the bank’s Memorandum and Articles of Association, reflecting their confidence in the bank’s strategic direction and growth prospects. The newly issued shares will be listed on the Nigerian Exchange Limited (NGX) and will rank pari passu with existing shares, ensuring equitable treatment for all shareholders.
Paragraph 5: Transforming for the Future
Fidelity Bank’s capital increase is a testament to its commitment to continuous improvement and its forward-looking approach. By strengthening its financial foundation, the bank is preparing itself for the challenges and opportunities of the rapidly evolving financial landscape. The additional capital will empower the bank to invest in its digital transformation, expand its service offerings, and enhance its customer experience. This strategic initiative reinforces Fidelity Bank’s dedication to providing innovative financial solutions and driving sustainable growth.
Paragraph 6: A Foundation for Long-Term Success
The successful implementation of the capital-raising plan will establish a solid foundation for Fidelity Bank’s long-term success. With a stronger balance sheet, enhanced competitive position, and greater financial flexibility, the bank will be well-equipped to navigate the evolving market dynamics and capitalize on emerging opportunities. Fidelity Bank remains committed to its mission of empowering individuals, businesses, and communities, and this capital increase is a vital step in achieving that mission. The bank’s commitment to regulatory compliance and shareholder alignment ensures a transparent and equitable approach to its growth strategy, further strengthening its reputation as a trusted financial institution in Nigeria.
