United Capital Group, a leading pan-African investment banking and financial services institution, has announced a historic milestone expected to transform Sierra Leone’s capital market, with the issuance of the country’s first local currency corporate bond.
Acting as the Financial Adviser, United Capital, through its investment banking arm, provided bespoke structuring, financial advisory, and fundraising services in the LAPO Sierra Leone SLE32m (approximately US$1.4m) bond.
LAPO, with head office in Nigeria is a microfinance institution serving micro, small, and medium enterprises (MSMEs) in Sierra Leone, with a significant focus on providing affordable loans to women from low-income households.
Dr. Gbadebo Adenrele, Managing Director, Investment Banking at United Capital Group, expressed enthusiasm about the transaction as adviser, noting that the landmark transaction “not only strengthens the corporate bond framework but also deepens the Sierra Leonean capital market. At United Capital, we are committed to enhancing the capital market ecosystem across Africa through active participation in innovative transactions like this.”
This bond issuance, United Capital added, is a significant step in its broader strategy to expand its footprint across the African capital markets, even as the Group Chief Executive Officer, Peter Ashade, emphasized the pan-African impact of the transaction.
For him, “this successful corporate bond issuance in Sierra Leone is a testament to our strategic focus on expanding United Capital’s presence across Africa. By leveraging our expertise and resources, we are unlocking new opportunities and driving economic growth across the continent. Our goal is to empower corporates and sovereign governments with tailored financial solutions that transcend borders and foster prosperity throughout Africa.”
The transaction, the statement added, was a partnership involving key financial institutions like Invest Salone (a UK-funded private sector development programme) and Pennarth Greene (a Sierra Leonean-based corporate finance advisory firm), underscoring a collective commitment to developing the bond market in Sierra Leone.
The Africa Local Currency Bond Fund (ALCB Fund) served as the anchor investor, injecting approximately SLE27 million into the transaction, further signaling strong interest in Sierra Leone’s burgeoning economy.
United Capital Group added that its pivotal role in this transaction highlights a capacity to lead and manage significant capital market activities across borders. Its track record includes leading major listings like the Transcorp Power IPO on the Nigerian Exchange (NGX), which boasted a market capitalization of N1.8 trillion, reaffirming its position as a key player in Africa’s financial landscape.
