UBA Raised $300m Eurobond at 6.750% to Offset Debt
United Bank for Africa (UBA) Plc successfully raised $300 million through its recently announced $1.5 billion global medium term note (GMTN) programme, Pan African lender said in a statement.
Recalled that UBA announced the offering on November 8, 2021, as the Pan Africa lender seeks earlier liquidation of its $500 million bonds expiring in 2022. According to the detail of the issuance, leadership at the UBA group hinted about a plan to apply the proceeds from the fresh issue will be used to offset its debt.
The global offering represents five-year senior unsecured notes (144A/Reg S) listed on the London Stock Exchange and was the first issue out of the newly established USD 1.5 billion GMTN Programme, established in November 2021.
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%.
UBA said net proceeds from the sale of the notes will be applied towards the repayment of outstanding debt. The issuance was arranged by a syndicate of joint lead managers and Bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank.
It said that United Capital Plc acted as a Financial Adviser and Joint Bookrunner for the transaction. Investor interest was global, including the United Kingdom, Europe, Asia, Africa, the Middle East and the United States, the bank said in the statement.
It also hinted that the senior notes were priced yesterday evening 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 statement reads that the new issue was launched alongside a Tender Offer on the outstanding USD500 million, 7.750% notes due 2022.
UBA said the expiration date of the cash Tender Offer is November 16, 2021. Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank are acting as Dealer Managers on the Tender Offer.
Speaking on the offering, the Group Managing Director & CEO of UBA Plc, Kennedy Uzoka said, “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 Chief Finance Officer, 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”.
UBA is a leading full service pan-African bank with a presence in 20 African countries and offering banking services to more than 25 million customers.
With a presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative digital banking offerings, trade finance and ancillary banking services. # UBA Raised $300m Eurobond at 6.750% to Offset Debt# Read Also: MTN Nigeria to Issue Public Offer in November
