Dipo Olowookere
By Dipo Olowookere
The $500 million Eurobond recently launched by United Bank for Africa (UBA) Plc has been oversubscribed by investors from the United Kingdom, Europe, Asia, the Middle East and the United States, Business Post can report.
It was gathered that exercise was 240 percent oversubscribed, reflecting the strong demand for UBA’s credit and support for its pan-African financial services strategy by global investors.
The bond, 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 percent, priced at an effective yield of 7.875 percent.
Investors saw this pricing as the best possible 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 $1 billion in February 2017.
The lender’s 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.
Group Managing Director/CEO of UBA Plc, Mr Kennedy Uzoka, was quoted as saying that, “This successful Dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group.
“The $500 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.”
In his remarks, the Group CFO of the lender, Mr Ugo Nwaghodoh, stated that, “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.”
