Fidelity Bank Plc is set to access the capital market for N48bn following a Completion Board Meeting held in Lagos on Thursday. The capital raising exercise will begin on September 27 and end on October 9, 2007.
The funds will be raised the funds via an offering of 5.501billion ordinary shares of 50 kobo to the public and 498.899 million units by way of rights to existing shareholders at N8 respectively.

The directors and professional advisers of Fidelity Bank Plc appended their signatures to the agreement to join hands and assist the bank to raise the funds. Fidelity Bank intends to use the funds to expand branch network, upgrade information technology and enhance working capital.

About N26bn or 57.3 per cent will go for the enhancement of working capital, trade finance, corporate finance and project finance, while N9.9bn is earmarked for branch expansion, just as N4.9bn and N4.5bn is for investment in subsidiaries and IT upgrade respectively.

According to the Chairman of the bank, Chief Christopher Ezeh, the nation’s rapidly growing economy provides opportunities for Fidelity Bank to play deeper into capital intensive sectors like oil and gas, telecommunications, construction, housing and power.

He said, “In addition to these core industries, Fidelity is focusing on retail financial services, particularly the lucrative markets of corporate and private lending, operates in select businesses in the wholesale market segment.”

The Managing Director/Chief Executive of the bank, Mr. Reginald Ihejiahi, who is highly optimistic about the success of the Offer, said that the long-term goal of the bank was to establish a highly profitable African financial institution with branches throughout the continent. He said that bank would achieve its goal by pursuing a differentiating strategy that focuses on service efficiency and product excellence.”

“Propelled by compelling industry dynamics, including Central Bank of Nigeria initiative and significant market demand, Our operating profit has grown over the past four years. In February 2005 Fidelity Bank was nominated award for the most improved bank in Nigeria, fund manager of the year and stock offer of the year. The bank also carries strong credit ratings by Global Credit Rating Agency of South Africa, which has given Fidelity an “A” credit rating since 2002,” Ihejiahi said.

According to him, apart from the bank’s strong legacy in serving the Nigerian governmental and financial agencies, Fidelity Bank is also one of the settlement banks to the Nigerian Stock Exchange and participates in wholesale currency dealing known as Wholesale Dutch Auction System.