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If you have N10m to invest, try United Capital’s N10 bn bond offering

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United Capital PLC (UCAP) is seeking to raise up to N10.0bn 5-year Fixed Rate Senior Unsecured Bonds and N10.0bn 7-year Fixed Rate Senior Unsecured Bonds, under its N30.0bn debt issuance programme.

The issuer currently has Total Assets of N197 billion (as at March 31, 2020) and over N 150 billion in clients’ funds managed by its Asset Management subsidiary.

United Capital has consistently shown a strong financial and operating track record with a Return on Equity of 25 percent and a Net Profit Margin of 57.8 percent as at FY’2019. 

UCAP plans to utilise proceeds from the issuance to make anchor investments/underwrite investment grade fixed income instruments issued by entities advised by the Issuer. Investments will be within the Issuer’s credit risk management framework and selectively supported by sovereign guarantees.

The effective yield for the offering is in the range of 12 – 12.5 percent for the 5 year, and 12.5 – 13 percent for the 7 year tenor.

The minimum subscription is N10 million and multiples of N1m thereafter, while the coupon is a fixed rate to be paid semi-annually, the offer open date is Monday 04, May 2020, while it closes on Friday 15 May 2020.

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