By Modupe Gbadeyanka
The management of Union Bank of Nigeria Plc has confirmed approaching the bond market to raise a fresh capital to make it meet up with its obligations effectively.
A statement issued by the lender disclosed that a total of N20 billion was raised from the market and was subscribed to by 165 percent.
Union Bank said the inaugural issuance of Series I and II Bonds was under its newly registered N100 billion Debt Issuance Programme.
The issuing houses were Stanbic IBTC Capital (Lead), Union Capital Markets, Barclays Securities and Standard Chartered Capital & Advisory.
Chief Executive Officer of Union Bank, Mr Emeka Emuwa, noted that the new funding will support the financial institution’s loan book diversification efforts and provide further working capital as it forges ahead towards its vision to be Nigeria’s most trusted and reliable banking partner.
He described the level of response to the debut issuance as a testament to the growing strength of the bank’s brand and performance and underscores the high level of investor confidence.
“The inaugural issuance under the N100 billion bond programme marks a milestone achievement in our bid to accelerate business growth and continue our commitment to re-establish the bank as one of Nigeria’s leading financial institutions.
“I acknowledge the efforts of the investor community in ensuring the success of this bond issuance under our registered programme and assure them that their confidence in us will be met with the effective delivery of our long-term growth strategy,” the bank chief said.
Following an extensive transformation programme which commenced in 2014, Union Bank has focused on being Nigeria’s most reliable and trusted banking partner.
Notwithstanding the over-subscribed book and the active participation from a wide array of institutional investors (including pension fund and asset managers), Union Bank maintained its discipline on pricing.
