United Capital Plc has successfully raised the sum of N10 billion in its Series 1 Bond issuance under a N30billion Medium-Term Debt Programme registered with the Securities and Exchange Commission (SEC).The bond issuance, which opened on Monday, May 4, 2020 and closed on Friday, May 15, 2020,was oversubscribed by 24 per cent, making United Capital the first non-bank issuing house to issue a corporate bond in the history of the Nigerian capital market.
Commenting, Group Chief Executive Officer, United Capital Plc, Peter Ashade said: “The bond issuance, which signifies the first by any investment bank in the history of the Nigerian capital market solidifies our performance track record as a formidable ally in the investment banking industry. With an oversubscription by 24 per cent investor orders, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients”.
Also commenting on the transaction, Managing Director, Investment Banking, Babatunde Obaniyi, said: “The bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and once again highlights our capabilities in the successful execution of novel debt capital market transactions.
As a joint issuing house/book runner on the deal, United Capital advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor road show and crafting an appropriate and compelling business case for the issuance.”
“The Series 1 bonds, which have a tenor of 5 years, recorded a 124 per cent subscription, with commitments received from Pension Funds (comprising 64 per cent of the issue), other financial institutions as well as high net worth individuals. This very strong outcome further affirms buy-side investors’ confidence in United Capital Plc, and a testament to the leading role the organization continues to play in the financial services space,” he said.
United Capital Plc is a leading financial services group in Africa, focused on leveraging technology to empower businesses, individuals and governments with excellent financial services in investment banking, asset management, trusteeship, securities trading, wealth management and consumer finance, while contributing to economic growth and prosperity across Africa by supporting financial inclusion. Since it was founded over 50 years ago, United Capital has cultivated and sustained a heritage of excellence in the finance space in Africa.