United Bank for Africa (UBA) has issued a $300 million Eurobond that was 1.7 times oversubscribed.
The transaction attracted an order book of $520 million, relative to the target size of $300 million. 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 issuance was arranged by a syndicate of joint lead managers and bookrunners comprising Citibank, Mashreqbank, Renaissance Capital and Standard Chartered Bank. United Capital Plc acted as a Financial Adviser and Joint Bookrunner
The issue also attracted interest from global investors across Europe, U.S., Middle East, Asia and Africa, with orders from quality real money accounts.
UBA’s ability to achieve this transaction despite the challenging market backdrop, reflects continuing global investor appetite for UBA’s credit and support for the Group’s Pan African banking strategy.
In conjunction with the new issue, UBA announced a tender offer on the existing $500 million Senior Unsecured Notes due 2022. The issue size of $300 million represents the amount required to fund the tender offer based on the maximum expected hit rate, in line with market precedents.
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 & CEO of UBA Plc, Mr. Kennedy
Uzoka stated: “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”.
The new issue along with the liability management exercise, complements UBA’s stable funding base and supports the growth of the Bank’s balance sheet and the overall business.
This is 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.