United Bank for Africa Plc (UBA) successfully raised USD500
million, though a debut Eurobond, which was 240% over-subscribed. The
significant investor demand reflects the strong global investor appetite for
UBA’s credit and support for the Group’s pan-African financial services
strategy. The Global Offering is a five-year senior unsecured benchmark bond
(144A/Reg S) listed on the Irish Stock Exchange and will further support
the Group’s strategic vision, as it continues to grow its franchise
across the continent and client segments.
The bond, which is rated by both Fitch
(B, stable outlook) and S&P (B, stable outlook), matures in June 2022 and
was issued with a coupon rate of 7.75%, priced at an effective yield of
7.875%. This pricing is seen by the global investor community as the best
possible pricing for a debut issue from a financial institution of Nigerian
origin in current markets. The pricing was at par to the
recent bond issue by the Federal Republic of Nigeria, which issued USD1
billion in February 2017.
Investor interest was global, including
the United Kingdom, Europe, Asia, the Middle East and the US.
Speaking on the offering, the Group
Managing Director/CEO of UBA Plc, Mr. Kennedy Uzoka stated: “This
successful dollar-denominated offering further illustrates global investor
confidence in the strong fundamentals of our Group. The USD500
million bond will complement our stable funding base and support the
growth of our balance sheet and the overall business. More importantly, this
medium-term funding will further enhance our strength in financing
profitable, impactful projects on the African continent.”
Also commenting on the Eurobond,
the Group CFO, Mr. Ugo Nwaghodoh said: “UBA's debut global offering
is another milestone for us. It is timely in the Group's growth phase and
aligns with our strategic plan to profitably grow the balance sheet, as we
maintain our prudent risk management and benchmark asset quality ratios.”
The United Bank for Africa Plc is
a leading pan-African financial institution, offering banking services to
more than 14 million customers, across over 1,000 business offices and
customer touch points in 19 African countries. With presence in New York,
London and Paris, UBA is connecting people and businesses across Africa through
retail, commercial and corporate banking, innovative cross border payments and
remittances, trade finance and ancillary banking services.
No comments:
Post a Comment