UBA raises $300m via senior notes to repay debt

United Bank for Africa Plc says it has successfully raised $300 million through its recently announced Global Medium Term Note Programme.

The lender said in a statement that the net proceeds from the sale of the notes would be applied towards the repayment of outstanding debt.

According to the statement, the global offering represents five-year senior unsecured notes 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.

It said the senior notes, rated by both Fitch (B) and S&P (B-), were issued at a coupon of 6.750 per cent and would mature in November 2026.

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

It said United Capital Plc acted as a financial adviser and joint bookrunner.

The bank noted that the offering was announced on Nov. 8, adding that investor interest was global, including the United Kingdom, Europe, Asia, Africa, the Middle East and the US.

It said the senior notes were priced on Wednesday evening via intra-day execution and the orderbooks were 1.7x oversubscribed.

UBA said the new issue was launched alongside a tender offer on the outstanding $500 million, 7.750 per cent notes due 2022, adding that the expiration date of the cash tender offer is Nov. 16, 2021.

The Group Managing Director and Chief Executive Officer of UBA, 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, described the successful global offering as 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,” he added.

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