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UBA terminates $0.5bn Eurobonds early ahead of new debt offering

“A 5-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.”

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United Bank for Africa (UBA) has disclosed plans to terminate its $500 million Eurobond earlier ahead of issuing a new similar note.

In a notice to the Nigerian Exchange Limited (NGX) on Monday, November 8, the lender invited expression of interests from holders of its $500 million Eurobond due for maturity in 2022 for redemption ahead of time through a cash tender offer before issuing a new similar note.

The bank announced the commissioning of five managers: Standard Chartered Bank, Citigroup Global Markets Limited, Renaissance Securities (Cyprus) Limited, United Capital Plc, and Mashreqbank psc, to convene a call for global investors linked to a number of other meeting starting on Monday.

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The notice read: “A 5-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 per cent 2022 bonds (US91339TAA51 | XS1623828966) and will announce today a cash tender offer for any and all of the outstanding bonds (the “Tender Offer”).”

Recall, four years ago, the five-year senior unsecured bond, the first of that kind from the bank, drew overwhelming interest at the point when it was priced at 7.75 per cent and subscription trumped offer by more than double.

 

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