By Dipo Olowookere
Five-year senior unsecured notes worth $300 million have been sold to offshore investors by United Bank for Africa (UBA) Plc at a coupon rate of 6.75 per cent.
The papers, which would be maturing in November 2026, were issued by the financial institution under its $1.5 billion global medium-term note programme.
Business Post reports that the exercise caught the attention of investors across the continents as offers were received from the United Kingdom, the United States, Africa, Asia, Europe and the Middle East.
A notice from the Nigerian lender disclosed that the “senior notes were priced via intra-day execution” and was oversubscribed by 1.7x.
According to the bank, this “reflects continuing global investor appetite for UBA’s credit and support for the group’s pan-African strategy.”
The notes were rated by both Fitch (B) and S&P (B-) and this must have inspired investors to buy them as UBA is also one of the major banks in Africa with operations in the UK and the US.
Recall that on November 8, 2021, the bank had announced its intention to issue the Eurobond with the net proceeds to be used for the “repayment of outstanding debt.”
“This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our group.
“It is a testament to our customer-first strategy, pan-African growth story, supported by prudent risk management and benchmark asset quality ratios,” the Group Managing Director/CEO of UBA, Mr Kennedy Uzoka, stated.
On his part, the Group CFO, Mr Ugo Nwaghodoh, disclosed that, “UBA’s successful global offering is another milestone for the Group. the new issue further enhances our stable funding base and supports the growth of our balance sheet and our overall business.”
The issuance was arranged by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank, while United Capital Plc acted as a financial adviser and joint bookrunner.
Aduragbemi Omiyale