UBA plans to launch $500 million Eurobond for general banking purposes

23 May 2017
Financial Nigeria


The bank said the Eurobond issuance has been approved by the Central Bank of Nigeria and the Securities and Exchange Commission.

Kennedy Uzoka, Group Managing Director, United Bank for Africa Plc

The United Bank for Africa has announced that it plans to launch up to $500 million senior unsecured medium-term debt notes, according to a statement released by the Nigerian Stock Exchange on Tuesday. The Nigerian lender said it intends to utilize the net proceeds of the Eurobond for its general banking purposes.

The bank said the Eurobond issuance – which will be listed on the Irish Stock Exchange – has been approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

“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,” the bank said.

Earlier this month, Fitch said Nigerian banks were facing funding and liquidity risks due mainly to tight FX liquidity, notwithstanding the government’s attempts to normalise the foreign-exchange interbank market. The ratings agency said it expected more Nigerian banks to tap the financial markets to strengthen their capital buffers.

UBA said it will make announcements today, May 23rd, about planned investors’ meetings in Europe and the United States, in respect of the issuance of the Eurobond.

“The commencement of the transaction will however be subject to finalizing transaction documentation and prevailing market conditions,” the bank said.

Other Photos/Videos