The managers are Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, Standard Chartered Bank and United Capital Plc.
In a disclosure on Monday, the bank called on interests from holders of its $500 million Eurobond due for maturity in 2022 for redemption.
It said: “United Bank for Africa Plc (“UBA”) hereby notifies the Nigerian Exchange Limited that it has mandated Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited, Standard Chartered Bank, and United Capital PLC as Joint Lead Managers to arrange a global investor call in addition to a series of fixed income investor meetings (each of which will not constitute a public offer in Nigeria) commencing on November 8, 2021.
“A five-year fixed rate benchmark USD- denominated Regulation S/144A Senior Unsecured offering under UBA’s Global Medium Term Note Programme may follow, subject to market conditions. In connection with the new bond offering, UBA proposes to redeem its outstanding US$500mn 7.750% 2022 bonds (US91339TAA51|XS1623828966) and will announce a cash tender offer for any and all of the outstanding bonds (the Tender Offer). Citigroup Global Markets Limited, Mashreqbank psc, Renaissance Securities (Cyprus) Limited and Standard Chartered Bank are dealer managers for the Tender Offer.”
With this fresh offering by the bank, the financial institution joined a growing list of lenders in 2021 seeking more funds via the international capital market.
In mid October, Fidelity Bank Plc announced its intention to launch up to $500 million unsecured notes on the Irish Stock Exchange in order to raise capital.
It said that the notes, which would be due in 2026, are expected to be traded on the regulated market of the Irish Stock Exchange, adding that the Securities and Exchange Commission (SEC) has not objected to the transaction.
In June, Ecobank Transnational Incorporated (“ETI”) announced the launch of $350 million Tier 2 Sustainability Notes, with its maturity date set at June 2031.
According to Ecobank, the bond which would be listed on the London Stock Exchange, would be used to finance or re-finance new or existing eligible assets as described in ETI’s Sustainable Finance Framework.
The bank explained that the net proceeds from the Eurobond subscription launched on September 15th would be used to provide medium term funding and boost the capacity of the tier -1 financial institution.
According to Access Bank, the offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed order book of over $1.6 billion, which represents the largest order book ever for a Nigerian bank Eurobond transaction.
