Nigeria's Fidelity Bank offers to buy-back $300 mln debt

Nigeria’s Fidelity Bank Plc has offered to buy back $300 million of debt and intends to issue new notes, aiming to extend the maturity of its debt profile, it said on Thursday.
The $300 million of debt, with an interest rate of 6.875 percent, is due to mature 9 May 2018, Fidelity said in a statement. It will offer $1,010 per $1,000 of notes held.
The offer “is being made in connection with a concurrent offering of new unsecured and unsubordinated notes,” the bank said, giving no further details about the new debt.
Citigroup Global Markets Ltd and Renaissance Securities (Nigeria) Ltd are managing the deal, Fidelity said.
The offer expires on October 10 and the results will be announced the same day.
Another Nigerian bank has offered to buy its foreign currency debt this week, making look like a trend in the country's financial market.
Analysts said banks are buying back their debt to as a means to lower yields and potentially help reduce their funding costs in the future.

In recent time, dollar liquidity has improved in Nigeria, which had faced a hard time meeting its foreign exchange obligations in the wake of falling global oil prices leading to currency shortage.

Most banks are taking the advantage of the improved liquidity to reprice their debt and help manage their liability.