By Eromosele Abiodun, 08.19.2010
The management of UACN Property Development Company Plc, yesterday announced that its just concluded N15billion bond issue was over-subscribed by 100 per cent. The company, a division of UACN Plc, in a statement, promised to use proceeds of the bond to build more houses and attempt to reduce the estimated 17 million housing deficit in the country. The application list for the issue opened and closed on August 17, 2010, following a successful book building process, which was significantly oversubscribed.
According to UPDC, the bonds, which were issued at par, have a tenor of five years and a coupon rate of 10 per cent per annum, adding that the coupon on the bond will be paid semi-annually in arrears, while the principal will be repaid in six equal semi-annual instalments commencing on 17 February, 2013.The issuing houses for the bond are Stanbic IBTC Bank, the leading issuing house; FBN Capital Limited and First Securities Discount House Limited, the joint issuing houses.
Speaking at the company’s completion board meeting in Lagos, the Chairman, UPDC, Mr. Larry Etta, said the 10 per cent fixed rate non-convertible bond would be due for repayment in 2015.
Etta, who is also the Group Managing Director of UAC of Nigeria, the parent company to UPDC, said the public has a lot to benefit from the bond issue because there will more housing stock developed for Nigerians.
“Remember we have in Nigeria a housing deficit of about 17 million. With this money available UPDC will be able to try its best at reducing that deficit as regards estate developments in Lagos, Abuja and Port Harcourt and other places in the country. For us, we will be able to get funding for some of the initiatives we have got. Before now we had been using short-term instruments for long-term projects” he said.