United Capital Lists N10bn Bond on Stock Exchange
By Dipo Olowookere
The N10 billion series 1 bond issued to investors about four months ago by United Capital Plc under its N30 billion debt issuance programme has been listed on the Nigerian Stock Exchange (NSE).
The notes were admitted to the trading platform of the local exchange on Tuesday, September 22, 2020.
The United Capital’s N10 billion papers are with a 5-year maturity (due in 2025) at 12.5 per cent senior unsecured fixed rate.
Business Post reports that on May 28, 2020, United Capital allotted a total of 10 million units of the series 1 bonds to investors at a unit price of N1,000.
The notes, which have the symbol name of 12.50% UCAP MAY 2025 on the NSE trading platform, will have the interest paid to subscribers semi-annually, and payable in arrears on November 28 and May 28 of each year up to and including the maturity date.
Subscription for the bond sale opened on May 4, 2020, and closed on May 15, 2020, while United Capital Securities Limited acted as the stockbroker for the transaction.
The exercise recorded a subscription level of 124 per cent from a diversified institutional investor base including Pension Fund Administrators and other players in the financial service space, affirming buy-side investors’ confidence in United Capital and a testament to the leading role of the organisation continues to play in the financial services space.
According to the Managing Director, Investment Banking, Mr Babatunde Obaniyi, “The bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and once again highlights our capabilities in the successful execution of novel debt capital market transactions.”
The Group CEO of United Capital, Mr Peter Ashade, in his reaction, stated that, “The bond issuance, which signifies the first by any investment bank in the history of the Nigerian capital market, solidifies our performance track record as a formidable ally in the investment banking industry.”