Banking Briefs
THE United Bank for Africa Plc, UBA, has successfully raised $500 million though a debut Eurobond, which was 240 percent oversubscribed. The bank, in a statement said the significant investor demand reflected the strong global investor appetite for UBA’s credit and support for the group’s pan-African financial services strategy.
The global offering was a five-year senior unsecured benchmark bond 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 Fitch (B, stable outlook) and S&P (B, stable outlook), will mature in June 2022, and was issued with a coupon rate of 7.75 percent, priced at an effective yield of 7.875 percent.
This pricing was seen by the global investor community as the best possible pricing for a debut issue from a Nigerian-based financial institution in the international market.
The pricing was at par with the recent bond issue by Nigeria, which raised $1 billion in February 2017.
According to the statement, investor interest was global, including from the United Kingdom, Europe, Asia, the Middle East and the U.S.
Kennedy Uzoka, group managing director/CEO, UBA, stated: “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.”
— Jun 26, 2017 @ 01:00 GMT
Tags: group managing director/CEO impactful projects on the African continent Kennedy Uzoka nigeria UBA UBA’s $500m Eurobond Oversubscribed by 240% United Bank for Africa Plc
