UBA‘s $500m Eurobond oversubscribed by 240% 

… Reflects strong global investor appetite

The United Bank for Africa Plc (UBA) has announced that it has successfully raised $500 million though a debut Eurobond, which was 240 per cent oversubscribed.

The bank, in a statement, 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 statement also noted 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 strong global investor appetite for UBA’s credit and support for the Group’s pan-African financial services strategy has recently shown,  with the successfully raised USD500 million, though a debut Eurobond, which was 240% over-subscribed.

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%. This 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 issue by the Federal Republic of Nigeria, which issued USD1 billion in February 2017.

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

Speaking on the offering, Kennedy Uzoka, Group Managing Director/CEO of UBA Plc, noted that “This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group.
The USD500 million bonds 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 on the Eurobond, Ugo Nwaghodoh, Group CFO,  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.”