United Capital Plc, has raised N10 billion in its Series 1 Bond issuance under a N50 billion Medium-Term Debt Programme registered with the Securities & Exchange Commission (SEC).
The capital raise places the company as the first Issuing House to issue a Corporate Bond in the history of the Nigerian Capital market.
The company’s Group CEO, Peter Ashade, explained that this action, being a first for any investment bank in the history of the Nigerian Capital market, strengthens United Capital’s track record as a force to reckon with in the investment banking terrain.
He said, “With an oversubscription of 24% investor, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients.”
In line with the company’s goals for the year 2020, it served as a book runner on the deal, advising on the transaction structure, securing relevant regulatory approvals, and implementing a marketing strategy for the bonds. Its role also included making a compelling business case for the issuance, amongst others.
Babatunde Obaniyi, Managing Director, Investment Banking, said, “the bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and it once again highlights our capabilities in the successful execution of novel debt capital market transactions.”
The transaction having a tenor of 5 years, scored a 124% subscription, “with huge commitments from a diversified institutional investors’ base including Pension Fund Administrators and other players in the financial service space.”
He also explained how the strong outcome of the transaction re-affirms the confidence of its buy-side investors’ as well as its leadership in the financial services landscape.