UBA’s $500m Eurobond records 240% oversubscription | 234Radio

UBA’s $500m Eurobond records 240% oversubscription

UBA House

United Bank for Africa  Plc  (UBA) successfully raised $500 million through  a debut Eurobond, which was 240 per cent 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 March 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.”


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