By Aduragbemi Omiyale
Investors who bought the $500 million Eurobond of United Bank for Africa (UBA) Plc in June 2017 have received their full payment, the leading lender in Nigeria has confirmed.
The subscribers were paid off on Wednesday, June 8, 2022, after the debt instrument matured. The bond sale was with a coupon rate of 7.75 per cent and the proceeds were used to support the bank’s business in key sectors of the economy.
In a statement, the group managing director of UBA, Mr Kennedy Uzoka, described the repayment as a testament to the ability of the financial institution to fulfil its obligations, one of the key elements investors look out for when investing in bonds.
“The development is a testament to UBA’s robust and prudent liquidity management strategies, coupled with a very strong and diversified asset and liability management process.
“This, in spite of macroeconomic headwinds underpinned by FX illiquidity, double-digit inflation and currency devaluation,” the banker said.
“Our huge customer base, diversified geographical spread and uncommon multiple decades of proven track record continue to spotlight UBA as the preferred destination for investors, individuals and businesses alike,” Mr Uzoka added.
Business Post recalls that in November 2021, the bank repurchased $310.9 million of the 5-year notes through a cash tender offer and upon maturity, the outstanding portion of $189.1 million and the coupon of $7.3 million were redeemed.
UBA is a renowned financial institution providing banking and financial services to over 33 million customers across the globe. It has a presence in 20 African countries, including Nigeria. It also operates in France and the United Kingdom (UK) and is the only sub-Saharan African bank with a deposit-taking licence in the United States of America (USA),