Things are looking good for the United Bank for Africa Plc (UBA) and to confirm this, the pan-African bank has announced that it has successfully raised $500 million though a debut Eurobond, which was 240 per cent oversubscribed.
The bank, in a statement Monday, 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 both 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%, priced at an effective yield of 7.875%.
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.
Speaking on the offering, the Group Managing Director/CEO of UBA, Mr. Kennedy Uzoka, 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.”
Also commenting, the Group CFO, Mr. Ugo Nwaghodoh, said: “UBA’s debut global offering is another milestone for us. It is timely in the group’s growth phase and aligns with our strategic plan to profitably grow the balance sheet, as we maintain our prudent risk management and benchmark asset quality ratios.”
UBA is a leading pan-African financial institution, offering banking services to more than 14 million customers across over 1,000 business offices and customer touch points in 19 African countries.
With presence in New York, London and Paris, UBA connects people and businesses across Africa through retail, commercial and corporate banking, innovative cross border payments and remittances, trade finance and ancillary banking services, the statement said.
Credit: thisdaylive.com
