UBA raised USD500 million, though a debut Eurobond


June 16, 2017 By Hassan Gbassay Koroma 


United Bank for Africa Plc (UBA) had successfully raised five hundred million United States Dollars (USD500 million), though a debut Eurobond, which was 240% over-subscribed.

According to press release from UBA Head Office in Nigeria, the significant investor demand reflects the strong global investor appetite for UBA’s credit and support for the Group’s pan-African financial services strategy.

 It furthers states that the Global Offering was a five-year senior unsecured benchmark bond (144A/Reg S) 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), matures in June 2022 and was issued with a coupon rate of 7.75%, priced at an effective yield of 7.875% and the pricing is seen by the global investor community as the best possible pricing for a debut issue from a financial institution of Nigerian origin in current markets.The pricing was at par to the recent bond issued by the Federal Republic of Nigeria, which issued one billion United States Dollars (USD1bn) in February 2017.

According to release, Investor interest was global, including the United Kingdom, Europe, Asia, the Middle East and the US.

Speaking on the offering, the Group Managing Director/CEO of UBA Plc, Kennedy Uzoka stated that the successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group and the USD500 million bond would complement their stable funding base and support the growth of their 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,” he said.

 Also commenting on the Eurobond, the Group Chief Finance Officer, Ugo Nwaghodoh said UBA’s debut global offering is another milestone for them and it is timely in the Group’s growth phase and aligns with our strategic plan to profitably grow the balance sheet, as they maintain their prudent risk management and benchmark asset quality ratios.

The United Bank for Africa Plc 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 is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross border payments and remittances, trade finance and ancillary banking services.