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NSE lists United Capital’s N10b bond on exchange

Adewale Nurudeen



NSE lists United Capital’s N10b bond on exchange

The Nigerian Stock Exchange (NSE) has listed the N10 billion bond issued by United Capital Plc on the exchange.

The listing paves the way for bondholders to trade on their investments.

The N10 billion Five-Year 12.5 per cent Senior Unsecured Fixed Rate Series I Bond Due 2025 was issued on May 28, this year and will be due for maturity on May 28, 2025.

The Series 1 Bond was issued under the company’s N50 billion medium-term debt programme, which was registered with the Securities and Exchange Commission (SEC). The bond was oversubscribed by 24 per cent.

United Capital had in May 2020 set a new record as with its first bond issuance, the first issuing house to issue a corporate bond in the history of the Nigerian capital market.

Group Chief Executive Officer, United Capital Plc, Peter Ashade said the bond issuance solidified the company’s performance record as a formidable ally in the investment banking industry.

“With an oversubscription by 24 per cent investor orders, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients,” Ashade said.

Managing Director, Investment Banking, United Capital Plc, Babatunde Obaniyi, said the bond issuance added to the impressive portfolio of innovative and landmark transactions that the company had structured.

According to him, the bond issuance again highlighted the company’s capabilities in the successful execution of novel debt capital market transactions.

He noted that as a joint issuing house and book runner on the deal, the company advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor road show and crafting an appropriate and compelling business case for the issuance.

“The transaction, which has a tenor of five years, recorded a 124 per cent subscription, with huge commitments from a diversified institutional investors base including Pension Fund Administrators and other players in the financial service space.

“This very strong outcome further affirms buy-side investors’ confidence in United Capital Plc, and a testament to the leading role United Capital continues to play in the financial services space,” Obaniyi said.