UBA Seeks Early Redemption of $500m Eurobond, Plans Fresh Raise
United Bank for Africa (UBA) Plc. seeks early redemption of its $500 million Eurobond with a 7.750 per cent coupon maturing in the financial year 2022 amidst a plan for a fresh raise in the international debt capital market.
The Pan Africa lender makes the disclosure in a new statement submitted to the Nigerian Exchange (NGX) as part of regulation for listed companies, signed by Bili A. Odum, the group company secretary.
According to the statement, UBA hinted that it has mandated Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, Standard Chartered Bank, and United Capital PLC as Joint Lead Managers.
The selected local and international book runners are expected to arrange a global investor call in addition to a series of fixed income investor meetings, each of which will not constitute a public offer in Nigeria, commencing on November 8, 2021.
It said a 5-year fixed-rate benchmark of an undisclosed amount in United States dollar-denominated Regulation S/144A Senior Unsecured offering under UBA’s Global Medium Term Note Programme may follow, subject to market conditions.
In connection with the new bond offering, UBA proposes to redeem its outstanding US$500 million 7.750% 2022 bonds (US91339TAA51 | XS1623828966).
Pan Africa lender says it will announce today a cash tender offer for any and all of the outstanding bonds Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, and Standard Chartered Bank are dealer managers for the Tender Offer.
Amidst the ongoing earnings release, the United Bank for Africa sustained its trajectory in the third quarter of the financial year 2021, with a 13% year on year gross earnings growth to N173.87 billion.
Pan Africa lender’s profit before tax expanded strongly by 42% year on year to N47.17 billion in the third quarter of 2021, while profit after tax rose 35% to N44.02 billion in Q3 2021.
Solid balance sheet growth was noted to be a key earnings driver in the period amidst increased regulations and pressures on Industry’s cash reserve ratio debits.
#UBA Seeks Early Redemption of $500m Eurobond, Plans Fresh Raise. Read Also: Naira Exchange Rate to Rise as Nigeria Redeems $500m
