United Bank for Africa (UBA) Plc said it has successfully raised $300 million through its Global Medium-Term Note program (GMTN).
The group company secretary, Bili Odum, in a message on the Nigerian Exchange (NGX) Limited said: “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 Global Medium-Term Note Programme, established in November 2021.
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 percent.
According to the bank, net proceeds from the sale of the notes will be applied towards the repayment of outstanding debt. The offering was announced on November 8, 2021, and investor interest was global, including the United Kingdom, Europe, Asia, Africa, the Middle East, and the US.
“The senior notes were priced via intra-day execution and the order books were 1.7 times oversubscribed. The successful issue reflects continuing global investor appetite for UBA’s credit and support for the group’s pan-African strategy. The new issue was launched alongside a Tender Offer on the outstanding $500 million, 7.750 percent notes due 2022,” it said.
It stated further that “The new issue was launched alongside a Tender Offer on the outstanding $500 million, 7.750 percent notes due 2022. The expiration date of the cash Tender Offer is November 16, 2021.”