UBA raises $300m through GMTN programme

United Bank for Africa Plc has successfully raised $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 $1.5 billion GMTN Programme, established in November 2021.

The bank stated that the senior notes, rated by both Fitch (B) and S&P (B-), mature in November 2026 and were issued at a coupon of 6.750%.

“Net proceeds from the sale of the Notes will be applied towards the repayment of outstanding debt,” the bank’s Company Secretary, Bili A. Odunm, stated in a Notice to the Nigeria Exchange Group on Thursday.

The issuance was arranged by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank.

United Capital Plc, a subsidiary of UBA, acted as a Financial Adviser and Joint Bookrunner.

The Company Secretary noted that the bank announced the offering on November 8, 2021 with investors from the United Kingdom, Europe, Asia, Africa, the Middle East and the United States showing keen interest.

According to Obum, “The senior notes were priced on Wednesday evening via intra-day execution and the orderbooks 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 new issue was launched alongside a Tender Offer on the outstanding $500 million, 7.750% notes due 2022. 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 and CEO of UBA Plc, Mr. 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 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.”