United Capital Group, at the weekend reported that the Federal Government of Nigeria’s Domestic Dollar Bond, the country’s first ever domestic US Dollar-denominated bond generated unprecedented domestic demand, raising over US$900m.
A statement by the investment banking group, the successful issuance for which it acted as the Lead Issuing House and Coordinator achieve over 180% subscription levels, emphasizing its placing power in the capital markets and strong investor confidence in Nigeria’s economic stability and growth potential.
This first issuance under the Domestic FGN US Dollar Bond programme, the statement noted, offers a 9.75% yield and attracted significant demand from a diverse group of investors, including Nigerians and non-Nigerians residing in Nigeria, Nigerians in Diaspora, and institutional investors.
Proceeds of the bond which will be listed on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange), UCap explained, “will be deployed to critical sectors of the economy, as part of ongoing efforts to sustain growth and address key infrastructure gaps.”
Dr. Gbadebo Adenrele, Managing Director, Investment Banking at United Capital Group, described the issuance as “a landmark moment for Nigeria’s capital market.
“As a pioneer in this class of transactions, United Capital has laid the foundation for more such significant capital raises by the Nigerian Government, other African sovereigns and major corporate issuers.
The successful issuance of the Domestic FGN US Dollar bond is a testament to investor confidence in the country’s economic growth trajectory and our innovative approach to finance,” he stressed.
Also commenting, the Group CEO, United Capital Group, Peter Ashade, emphasized UCap’s commitment to developing Africa’s capital markets, noting that the “Domestic FGN US Dollar bond is a significant milestone for both the country and United Capital. This transaction aligns perfectly with our vision of transforming the African financial landscape. By providing access to innovative investment opportunities, we are empowering investors and contributing to Nigeria’s economic growth”.
Alongside United Capital’s role as the Lead Issuing House/Coordinator for the domestic bond issuance, Africa Finance Corporation served as the Global Coordinator, while Meristem Capital Limited, Stanbic IBTC Capital Limited and Vetiva Advisory Services Limited acted as Issuing Houses.
Other participants included Constant Capital Markets & Securities Limited and Iron Global Markets Limited, which acted as Financial Advisers; Olaniwun Ajayi LP and G. Elias acted as Solicitors; just as Greenwich Trustees Limited acted as Trustee.
“United Capital Group’s pivotal role in this transaction highlights its capacity to lead and manage significant capital market activities, as recently demonstrated with the listing by introduction of Transcorp Power Plc on the Nigerian Exchange Limited and the issuance of Sierra Leone’s first local currency corporate bond, reinforcing its reputation in Africa’s financial landscape,” the statement further added.
