By Seun Ibiyemi
Fidelity Bank Plc has reiterated its commitment to regulatory compliance and financial resilience in response to the recent circular issued by the Central Bank of Nigeria (CBN) regarding forbearance on the Single Obligor Limit (SOL) and other credit facilities.
In an official statement released to shareholders, NGX Regulation Limited (NGX RegCo), and other stakeholders, the Bank affirmed that it remains aligned with the CBN’s directive, which aims to strengthen capital buffers and encourage prudent financial management across the banking sector.
The Bank disclosed that it had recently raised ₦273 billion through a highly successful Public Offer and Rights Issue, which were oversubscribed by 237.92 per cent and 137.73 per cent, respectively.
Additionally, Fidelity Bank plans to raise a further ₦200 billion via a Private Placement in the 2025 financial year.
This move is designed to meet the CBN’s new minimum capital requirement of ₦500 billion for banks with international authorization.
Approvals from both the CBN and shareholders have been secured, with other necessary regulatory endorsements in progress.
Regarding the regulatory forbearance on SOL, Fidelity Bank clarified that its exposure involves only two obligors and expressed confidence that these exposures will be fully regularized within the first half of 2025.
The Bank also confirmed that the CBN’s forbearance on other credit facilities affects four customers. Substantial provisions have already been made, with structured recovery strategies in place to return these accounts to performing status or fully provision them by June 30, 2025.
Fidelity Bank further assured stakeholders that it expects to exit all CBN forbearance arrangements, including those related to SOL and credit facilities, within the stipulated timeframe. It also stated that the Bank remains well-positioned to meet all financial requirements necessary to pay dividends for the current and future financial years.
The Bank concluded by expressing gratitude to its investors, customers, and stakeholders for their continued trust and support.