The board of United Bank of Africa Plc, on Tuesday, announced to the Nigerian Stock Exchange (NSE), plans to issue up to $500m Eurobond, whose net proceeds would be used its “general banking purposes.”
“UBA will pay the net proceeds from the notes issuance into its foreign currency domiciliary account, which may be retained by UBA in foreign currency or converted into Naira, depending on UBA’s requirement from time to time,” according to statement signed by Bili Odum, the Group Company Secretary, which adding that a certificate of capital importation will not be obtained in respect of the proceeds of the Notes which are not converted into Naira.
The announcement of the senior unsecured medium term debt notes, comes days after international rating agency- Standard and Poor’s (S&P) assigned its ‘B’ long term and ‘B’ short term global scale counterparty credit ratings to the United Bank for Africa Plc (UBA). The rating which makes it at par with that on the Nigerian Sovereign, is the highest currently assigned to any Nigerian-based financial institution, thus reinforcing the respectable quality and strength of UBA, the third largest Nigerian-based bank by total assets, deposits and profits.
Odum explained further that while the Eurobond would be listed on the Irish Stock Exchange, there are plans also to meet investors in Europe and the U.S for the purpose of the Notes issuance.
Although it plans to issue the notes directly, the bank said it would retain the flexibility to substitute the issue with an offshore special purpose vehicle and that “where market conditions allow for such, prior maturity of the notes.”
Already, the bank said it has obtained “no Objection” approvals to the transaction from the Central Bank of Nigeria and the Securities & Exchange Commission.