The United Bank for Africa Plc on Monday said it had raised $500m through a debut Eurobond, which was oversubscribed by 240 per cent.
“The significant investor demand reflects the strong global investor appetite for UBA’s credit and support for the group’s pan-African financial services strategy”, the lender said in a statement.
According to the bank, the global offering is a five-year senior unsecured benchmark bond listed on the Irish Stock Exchange.
It is expected to further support the group’s strategic vision, as it continues to grow its franchise across the continent and client segments.
The bond, rated by Fitch and S&P, matures in June 2022.
The lender said the bond was issued with a coupon rate of 7.75 per cent and priced at an effective yield of 7.875 per cent.
It said the pricing was at par to the recent bond issue by the Federal Republic of Nigeria, which issued $1bn in March 2017.
Investor interest was global, including the United Kingdom, Europe, Asia, the Middle East and the United States, the lender added.
The Group Managing Director/Chief Executive Officer, UBA, Mr. Kennedy Uzoka, was quoted as saying, “This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our group.
“The $500m bond will complement our stable funding base and support the growth of our balance sheet and the overall business. More importantly, this medium-term funding will further enhance our strength in financing profitable, impactful projects on the African continent.”
Also commenting on the Eurobond, the Group CFO, Mr. Ugo Nwaghodoh, said, “UBA’s debut global offering is another milestone for us.”