United Bank for Africa Plc has successfully raised $300 million through the issuance of a new five-year senior unsecured note listed on the London Stock Exchange.
The offer was the first issue out of the newly established $1.5 billion Global Medium Term Note (GMTN) programme established in November 2021.
This is according to a notice signed by the company’s secretary, Bili Odum, and filed with the Nigerian Exchange Limited (NGX).
The transaction attracted an order book of $520 million representing 1.7 times oversubscription, relative to the target size of $300 million.
The issue attracted interest from global investors across Europe, U.S., Middle East, Asia and Africa, with orders from quality real money accounts.
UBA’s ability to achieve this transaction despite the challenging market backdrop reflects continuing global investor appetite for UBA’s credit and support for the Group’s Pan African banking strategy.
In conjunction with the new issue, UBA announced a tender offer on the existing $500 million Senior Unsecured Notes due 2022. The issue size of $300 million represents the amount required to fund the tender offer based on the maximum expected hit rate, in line with market precedents.
The new issue along with the liability management exercise complements UBA’s stable funding base and supports the growth of the Bank’s balance sheet and the overall business.
This issuance represents UBA’s second Eurobond transaction and the bank’s first issuance under the recently established $1.5 billion Global Medium Term Programme, which was set up to enable the Bank access funding from the international debt capital markets, as and when required, in line with its growth plans and funding strategy.
Mr. Kennedy Uzoka, the Group Managing Director & CEO of UBA Plc, while commenting on the offering, stated: “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”
Also commenting on the Eurobond, the Group CFO, Mr. Ugo Nwaghodoh said, “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”.