***Second Tranche in a $50M Note Programme to Support Bank’s Rapid Growth***
**Fidelity Bank (Bahamas) Limited** (BISX:BAB) announced today that it plans to raise another $10 million through a Note Offering to fund the rapid growth in its assets. The Note Offering is the second tranche in a $50 million Note Programme announced by the Bank in late 2007.
In October 2007, the Bank successfully completed the placement of $15 million in debt securities under the Programme. The fixed and floating rate securities were placed with institutions and high net worth investors.
Proceeds from the new $10 million Note Offering, with maturity of five and seven years, will be used to fund the Bank’s rapidly growing loan portfolio. The new Offering will be through a Private Placement and comprise of “Series C” – $5,000,000 Redeemable 7% Fixed Rate Note due 2013; and a “Series D” – $5,000,000 Redeemable Floating Rate Note at Prime plus 1.75% due 2015. Royal Fidelity Capital Markets Limited is the Placement Agent and the Note Offering opens on May 13, 2008.
Anwer Sunderji, Fidelity’s Chief Executive said, *“The Bank’s loan book grew a robust 42% over the last twelve months while deposits grew 40%. Growth has been fueled by strong demand for the Bank’s products in all areas. The asset quality continues to be excellent with non-performing assets below 3% and above industry standards.”* He added, *“Our priorities remain to maintain a strong balance sheet and emphasize credit quality. Our skilled and motivated employees, coupled with innovative products and services that offer compelling value to customers, are the primary components that are driving the Bank’s significant growth.”*
Mr. Sunderji said that the Bank’s risk weighted capital adequacy ratio remained strong and the Bank was well capitalized to support the growing balance sheet. As at end of 2007, Tier 1 capital was over three times in excess of regulatory requirements. He added, * “The Bank has had a very good 2007 and a strong start to 2008. Loan demand has been robust, customer acceptance of our new products has been high and our service quality has been commended by our customers. We opened a new branch in Marsh Harbour and will be opening a MoneyCentre branch in the expanded Robinhood Centre. The Bank is making excellent progress and we are advanced in building the foundation to achieve scale that will be reflected in growing profitability in 2009.”*