United Bank for Africa Plc (UBA) has successfully raised $300 million through the issuance of a new five-year senior unsecured notes (144A/Reg S) 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).
Recall that on the 8th of November 2021, the tier-1 lender revealed that it had instructed a host of leading financial institutions such as; Citigroup Global Markets Limited, Standard Chartered Bank, among others to host fixed income and global investors call, for the purpose of facilitating the issuance of a 5-year fixed-rate senior unsecured note. The financial giant also proposed to redeem its outstanding $500 million Eurobond due June 2022.
What you should know
Investors’ interest in the new offering went north, as massive interests from the United Kingdom, Europe, Asia, Africa, the Middle East and the US were recorded.
The senior notes were priced via intra-day execution and the order books were 1.7x oversubscribed. The successful issue reflects continuing global investor appetite for UBA’s credit and support for the Group’s pan-African strategy.
The senior notes, rated by both Fitch (B) and S&P (B-), will mature in November 2026 and were issued at a coupon of 6.750%. The issuance was executed by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank. United Capital acted as a Financial Adviser and Joint Bookrunner.
Interestingly, the new issue was launched alongside a Tender Offer on the outstanding $500 million Eurobond due 2022 with a coupon rate of 7.750%.
What they are saying
Commenting on the offering, the Group Managing Director & CEO of UBA Plc, Mr. Kennedy Uzoka 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”.