UBA’s US$300 million eurobond oversubscribed

In a season of international and domestic economic uncertainties, the United Bank for Africa Plc’s (UBA) US$300 million Eurobond attracted 1.7 times oversubscription from backers spread across the globe.

The Pan-African lender issued an announcement on the Nigerian Exchange Limited (NGX) detailing its plans to raise a five-year fixed rate benchmark USD-denominated Regulation S/144A Senior Unsecured offering under its Global Medium Term Note Programme subject to market conditions.

In a statement published yesterday, the bank indicated that the targeted US$300million Eurobond attracted an order book of US$520 million, marking a 1.7 times oversubscription.

As stated in a press statement sighted by THISDAY, the issue drew commitments from investors spread across Europe, the United States, the Middle East, Asia, and Africa, with orders from quality real money accounts.

The bank also noted that its ability to complete this transaction despite the volatile market conditions is a clear indicator that global investors’ appetite for UBA’s credit and support for the Group’s Pan African banking strategy is on a constant rise.

In its statement, the bank said: “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.”