United Bank for Africa plc, the pan-African financial institution with its headquarters in Lagos, Nigeria, said it has successfully issued $300 million 5-year senior unsecured notes (144A/Reg S) listed on the London Stock Exchange under its recently announced Global Medium Term Note (GMTN) programme.
The bank disclosed in a statement that the global offering was the first issuance out of the newly established $1.5 billion GMTN programme, which it established in November.
The offering was announced earlier in the week by the bank, a leading full-service leading full-service pan-African bank, in a disclosure filed to the Nigerian Exchange, during which it stated that the offer will mature in November 2026 at a coupon rate of 6.75 percent.
It had also noted that the net proceeds from the Eurobond sale will be applied to repaying outstanding debt.
The new issue was launched alongside a Tender Offer on the outstanding $500 million notes with a coupon rate of 7.75 percent, and due in 2022. The bank noted that the expiration date of the cash Tender Offer is November 16, 2021.
The issuance was arranged by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank, while United Capital Plc acted as a financial adviser and joint bookrunner to the $300 million senior unsecured notes, as well as on the outstanding $500 million offer; while the dealer/managers were Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank.
Kennedy Uzoka, group managing director and chief executive officer of the bank, commenting on the offering said: “This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group. It is a testament to our customer-first strategy, pan-African growth story, supported by prudent risk management and benchmark asset quality ratios.”
Ugo Nwaghodoh, group chief financial officer, said of the Eurobond offering: “UBA’s successful global offering is another milestone for the Group. The new issue further enhances our stable funding base and supports the growth of our balance sheet and our overall business.”
Meanwhile, the senior notes have been rated by both Fitch Rating (B) and S&P (B-) which saw global investor interest, including from the United Kingdom, Europe, Asia, Africa, the Middle East and the United States.
The senior notes were priced on Wednesday evening via intra-day execution and the order books were 1.7 times oversubscribed. The successful issue reflects continuing global investor appetite for UBA’s credit and support for its pan-African strategy.
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