United Bank for Africa Plc (UBA) has successfully raised USD 300 million through its recently announced Global Medium Term Note (GMTN) programme.
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 Global Medium Term Note Programme, established in November 2021.
The senior notes, rated by both Fitch (B) and S&P (B-), will mature in November 2026. The notes were issued at a coupon rate of 6.750 percent. The net proceeds from the sale of the Notes will be applied towards the repayment of outstanding debts.
The issuance was arranged by a syndicate of joint lead managers and book runners comprising: Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank. United Capital Plc acted as a Financial Adviser and Joint Book runner.
UBA announced the offering on November 8, 2021. The announcement attracted Investor interest from global market players, including the United Kingdom, Europe, Asia, Africa, the Middle East and the US. The senior notes were priced via intra-day execution. Amid global and domestic challenges, the United Bank for Africa Plc’s (UBA) $300 million Eurobond attracted 1.7 times oversubscription from investors across the globe.
The bank explained that its ability to achieve this transaction despite the challenging market backdrop, reflected continuing global investor appetite for UBA’s credit and support for the Group’s Pan African banking strategy.
USD500 million Tender Offer
The new issue was launched alongside a Tender Offer on the outstanding USD500 million at 7.750 percent, which will be due 2022. The expiration date of the cash Tender Offer is Tuesday, 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, Mr. Kennedy Uzoka, attributed the success to the judicious management strategy adopted by UBA managers.
“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”.
Mr. Kennedy Uzoka
Also commenting on the Eurobond, the UBA Group CFO, Mr. Ugo Nwaghodoh noted that the success chalked by UBA in the global financial market underpins the progress made by the Group.
“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”.
Ugo Nwaghodoh
This issuance represented 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.
UBA is a leading full service pan-African bank with presence in 20 African countries and offering banking services to more than 25 million customers. With 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.
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