Financial service provider raises N10 billion bond issuance

Aligning with its organisational objectives for Year 2020, United Capital Plc said it has successfully raised the sum of N10billion in its Series 1 bond issuance under a N30-billion medium-term debt programme registered with the Securities and Exchange Commission (SEC).

The bond issuance, which opened on May 4, and closed on May 15, was oversubscribed in investor commitments by 24 per cent making firm the first non-bank issuing house to issue a corporate bond in the history of the Nigerian capital market.

According to Group Chief Executive Officer, United Capital Plc, Peter Ashade, “the bond issuance, which signifies the first by any investment bank in the history of the Nigerian capital market, solidifies our performance track record as a formidable ally in the investment banking industry.

“With an oversubscription by 24 per cent investor orders, we believe this milestone accentuates the confidence in our institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients.”

Also commenting on the transaction, its Managing Director, Investment Banking, Babatunde Obaniyi, “the bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and once again highlights our capabilities in the successful execution of novel debt capital market transactions.

“As a joint issuing house/book runner on the deal, United Capital advised on the transaction structure, securing regulatory approvals and marketing strategy for the bonds including market timing, investor road show and crafting an appropriate and compelling business case for the issuance.”

According to him, the Series 1 bonds, which have a tenor of five years, recorded a 124 per cent subscription, with commitments received from pension funds (comprising 64 per cent of the issue), other financial institutions as well as high net worth individuals.

“This very strong outcome further affirms buy-side investors’ confidence in United Capital Plc, and a testament to the leading role the organisation continues to play in the financial services space,” he said

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