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UBA raises $500million from Investors via Eurobond

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United Bank for Africa Plc, UBA, has raised $500 million from international investors through Eurobond. The dollar-denominated bond, which was first of such offer by the bank, was 240 per cent oversubscribed.

The Financial institution said investors in the bond came from United Kingdom, Europe, Asia, the Middle East, United States and other parts of the world.

The $500 million Eurobond is a five-year senior unsecured benchmark bond (144A/Reg S) listed on the Irish Stock Exchange.

The bond, which is rated by both Fitch (B, stable outlook) and S&P (B, stable outlook), matures in June 2022 and was issued with a coupon rate of 7.75 per cent, priced at an effective yield of 7.875 per cent.

The Tier-1 lender said the fund realised from the offering will further support the group’s strategic vision, as it continues to grow its franchise across the continent and client segments.

The Group Managing Director/CEO of UBA Plc, Kennedy Uzoka, said the acceptance of the offering shows strong confidence global investors have in the bank.

Also speaking on the Eurobond, the UBA Group Chief Finance Officer, Ugo Nwaghodoh, described the offering as timely and will help the group achieve its growth objectives.

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